Vietnam’s consumer price index (CPI) in June is likely to increase by 0.32% from May, driven by the rising demand for power, fresh water, beverages, clothes, hats, and home appliances amid the hot weather, said the Vietnam Industry and Trade Information Center (VITIC).

Prices of various fuels are expected to go up soon, according to VITIC.

Statistics from the GSO showed that the CPI rose for the eighth month in a row in May, by 0.54% from April, as a result of higher costs of transport and housing and construction materials. This is the highest on-month CPI increase pace for the same month over the past five years.

Inflation rate was 2.28% in May from a year earlier and 1.88% from December 2015. Five-month core inflation rate was 1.78% while it was 0.25% and 1.87% on the monthly and yearly basis, respectively.

Monthly CPI in Vietnam is calculated from the 15th day of the previous month to the 15th day of the reference month.

Deputy Prime Minister Vuong Dinh Hue has recently affirmed the Government’s resolve to keep inflation at between 4%-5% for 2016 following consecutive CPI increases in the period from January to May, accelerating from an estimated 0.6% in 2015.

Source: www.ssi.com.vn