Transport saw the sharpest fall, education the highest increase.
The CPI in August fell 0.07 per cent compared to last month and rose 0.61 per cent year-on-year, according to the General Statistics Office. This was the first time in 13 years it fell month-on-month but was no surprise to experts as the rise or fall of the CPI has recently depended on goods managed by the government.
The petrol price was cut during August in the wake of declining oil prices worldwide. The retail price was cut VND1,440 ($0,06) per liter and diesel by VND2,260 ($0.1), triggering a 2.12 per cent fall in the CPI for the transport sector. This fall was the sharpest in all sectors and experts predict it will fall further.
The CPI is expected to decline sharply next month if tuition fees for the new school year do not increase significantly. Several cities and provinces, such as Hanoi, Ho Chi Minh City, Hoa Binh, Dak Lak, Binh Duong and Can Tho, are expected to see the highest tuition fee increases. Education rose 0.87 per cent compared to July, the highest of all sectors.
Building materials such as cement and steel fell 0.45 per cent compared to July, while telecommunications fell 0.02 per cent.
Catering services rose 0.1 per cent, whereas cereal fell 0.16 per cent and meat rose by 0.16 per cent. August was the third consecutive month the meat price increased.
Other goods rose only slightly compared to July.