National CPI reaches 5-year high in June

Sugar prices high despite imports

Việt Nam’s consumer price index (CPI) rose by 0.46 per cent month-on-month in June, the highest June increase recorded over the last five years, the General Statatistics Office (GSO) announced yesterday.

The index hike was driven significantly by massive fish die-offs along the central coastal areas of the country two months ago, said Vũ Thị Thu Thủy, the head of the office’s CPI department.

Worried that poison or toxins might be behind the abnormal fish die-offs, consumers bought less fish and more poultry and meat to eat. Prolonged hot weather and drought also reduced vegetable supplies in markets.  

As a result, food prices increased 0.36 per cent month-on-month in June.

Gasoline prices also increased twice since May 20, causing general fuel prices to grow by 6.46 per cent month-on-month in June.

The cost of electricity also increased by 1.27 per cent, due to the use of cooling devices in hot weather.

Growing construction demands - and the increased price of imported building materials - caused home maintenance costs to increase 0.14 per cent.

Package tourism prices were up 0.48 per cent, as families booked more tours during children’s summer holidays.

The prices of 10 of 11 major groups of goods and services increased in June, compared to May. Transport witnessed the highest increase at 2.99 per cent, followed by housing and building materials with a 0.55 per cent increase.

Prices rose by 0.21 per cent for restaurants and eating and drinking services. Prices also rose between 0.03-00.6 per cent for garments, household devices, healthcare and education services.

Only post and telecommunications decreased, with a 0.27 per cent fall in prices.

Thủy noted the CPI grew by 2.4 per cent year-on-year in June, the lowest level recorded for the same period over the last 10 years. The average CPI expanded by 1.72 per cent in the first half of this year, also a 10-year low.

In June, gold prices declined 0.01 per cent over the previous month but increased 4.04 per cent year-on-year. Dollar rates rose by 0.09 per cent month-on-month and increased 2.52 per cent year-on-year.

Đỗ Thị Ngọc, the deputy head of the CPI department, said monetary and macro-economic conditions were stable during the first half of this year, with average inflation rising by 1.8 per cent year-on-year. This signals inflation will be around 5 per cent this year, in line with national targets, she said.

Commenting on the influence the British vote to leave the European Union (EU) may have on Việt Nam, the GSO told the local press Việt Nam would not see any significant impacts from a Brexit.

Since Việt Nam has not been integrated deeply into the global economy, the British exit would only have strong impacts on the EU, US and major Asian markets, such as Japan and Singapore, the GSO said.