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CPI up 0.1% in August

Released at: 16:10, 25/08/2016

CPI up 0.1% in August

Photo: Duc Anh

Major increase in medicine and medical services has little impact on monthly figure.

by Minh Tuyet

The CPI increased just 0.1 per cent in August compared to July though one good in the CPI basket rose 6.18 per cent, according to the General Statistics Office (GSO).

Medicine and medical services increased a significant 6.18 per cent against July after many provinces pushed up prices during the month. The proportion of medicine and medical services in the CPI basket is small, however, limiting its impact on the CPI.

Five of the eleven goods in the CPI basket recorded slight monthly increases. Education rose 0.47 per cent, hats and footwear 0.14 per cent, tobacco and beverages 0.05 per cent, household appliances 0.05 per cent, and other goods and services 0.11 per cent.

Five others fell. Restaurants and catering services declined 0.14 per cent, household and building materials 0.02 per cent, transport 1.97 per cent, post and telecommunications 0.03 per cent, and tourism and culture 0.12 per cent.

The CPI in August increased 2.57 per cent year-on-year and 2.58 per cent against last December.

Inflation rose 0.09 per cent compared to July and 1.83 per cent year-on-year.

By region, many cities and provinces saw the CPI decline in August against July, such as Hanoi and Ho Chi Minh City, while it increased in most, including Thua Thien Hue, by 1.48 per cent, and Thai Nguyen 3.01 per cent.

The price of public medical services increased in accordance with a decree from the Ministry of Health and the Ministry of Finance released on October 10 last year. Some universities also increased their tuition fees.

The summer saw electricity and water use rise, pushing up the cost of living by 0.16 per cent and the cost of household electricity by 0.18 per cent.

Other factors limited the CPI increase. In August, food and meat supplies were plentiful and prices fell slightly. Building material prices fell because of a decline in building demand and the global steel price.

The petrol price was cut twice, on July 20 and August 4, by a total of 3.31 per cent.

Additionally, August is lunar July, a period in which Vietnamese avoid spending money and building houses while companies prefer not to introduce new products.

Consumption demand in August was not high and storms during the month resulted in many people traveling less.

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