Vietnam’s consumer price index (CPI) in August inched up 0.45 percent month-on-month, and 3.89 percent from the same time last year, pushing up the eight-month figure to 3.52 percent year on year, according to the General Statistics Office (GSO).

Among the 11 main commodity groups, 10 experienced price rise, including food and catering services (0.87 percent); education (0.46 percent); housing and building materials (0.44 percent); culture, entertainment and tourism (0.19 percent), and transportation (0.13 percent). Only posts and telecommunication services saw price drop of 0.07 percent.

Director of the GSO’s Price Statistic Department Do Thi Ngoc said that the rise in August’s CPI was fuelled by high price of food, especially pork which swelled 3.41 percent from previous month. She also attributed the hike of 2.87 percent in vegetable price to the impact of heavy rains and floods.

In addition, gas price was adjusted up 11,000 VND per 12-kilogramme gas tank in August, or 2.8 percent higher than the previous month, she said, adding that prices of construction materials moved up by 0.42 percent.

There was an increase in the tuition fees in some provinces and central-level cities under the Government’s Decree No.86/2015/ND-CP.

Meanwhile, a surge in VND/USD exchange rate resulted in price rise of imported products like gasoline, cars, motorbikes, liquor, tobacco, and tours to foreign countries.

A fall in the prices of railway tickets and electronic products are said to drag down the CPI in the month.

During the month, gold prices fell in tandem with the global prices to around 36.7 million VND (1,578 USD) per tael, down 1.41 percent from July.

The VND/USD exchange rate fluctuated as USD grew stronger than other foreign currencies. However, thanks to the flexible monetary policy from the State Bank of Vietnam, the trading band of VND/USD was around 3 percent. Each USD was sold for an average of 23,330 VND, increasing 1.12 percent against last month.

Basic inflation (CPI exclusive of foodstuff, fresh food, energy, healthcare and education service) in the first eight months stood at 1.38 percent, reflecting a stable monetary policy.

The GSO forecast a rise in September’s CPI due to price surge in education service, pork price, gas and gasoline. 

Source: https://en.vietnamplus.vn