HÀ NỘI — The November Consumer Price Index (CPI) rose by 0.48 per cent over October and by 4.52 per cent year-on-year, driven by price increases in the transportation and food and beverage sectors, according to the General Statistics Office of Vietnam (GSO).
“The rise in November CPI can be attributed to a food sector price rise of 0.72 per cent over October, due to excessive demand during the wedding season. Moreover, vegetable prices also went up as flood damaged crops in central and southern Việt Nam…,” said Đỗ Thị Ngọc, Director General of the GSO’s Price Statistics Department.
Out of the 11 main goods and service sectors, nine experienced an increase, including transportation, 1.63 per cent; medicines and healthcare services, 0.9 per cent; food and beverages 0.49 per cent; housing and construction materials 0.49 per cent; and textile and apparel 0.24 per cent. Education remained unchanged, and telecommunication was down by 0.02 per cent.
Petrol price increases on October 20 and November 4 with a fall in November averaged as an increase of 3.69 per cent, making the CPI for petrol rise by 0.15 per cent over October.
The increase in cooking gas prices by VNĐ19,000 (US$0.83) per 12 kg cylinder since November 1, because of a $60 per tonne spike in imported gas prices pushed the CPI for LPG (cooking gas) by 6.07 per cent over last month.
Factors that contributed to containing the November CPI included a decline of 0.51 per cent in electricity prices as summer ended, a fall in pork prices in several provinces over disease fears, and a 0.13 per cent fall in tourism sector prices.
According to the GSO, underlying inflation, that is the CPI excluding food and beverages, energy and State-controlled services like healthcare and education, has increased by 0.1 per cent compared to last month and 1.87 per cent, year-on-year. Underlying inflation rate for the first 11 months of 2016 has increased by 1.82 per cent compared to the same period in 2015, it said.
In November 2016, inflation in general rose higher than underlying inflation, reflecting the movement in prices affected by the market, through increased prices for food and beverage and gas and adjusted prices for healthcare and education services.
The year-on-year increase in underlying inflation rate also means that the current monetary policy is still effective for long-term macroeconomic stability, the GSO said.
Total average CPI for the first 11 months of 2016 has registered a year-on-year increase of 2.47 per cent. The GSO expects the CPI in December 2016 to increase higher than in November due to holiday season demand.
Source: Vietnam News
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