Consumer price index rises 1.72% in first half of 2016

Vietnam’s consumer price index (CPI) in the first six months of 2016 rose by 1.72% compared to the same period of last year, with an average monthly surge of 0.39%, according to the General Statistics Office (GSO).

The transportation group poses the highest increase in prices at 2.99% compared to May.

The CPI in June increased by 0.46% against May, 2.35% against last December and 2.4% year on year.

Surges were seen in 10 of the 11 major groups of products and services, with transportation posting the highest growth at 2.99%, followed by housing and building materials at 0.55%; restaurant and catering services at 0.21%; cultural, entertainment and tourism services at 0.18%; and beverages and tobacco at 0.13%. Post and telecommunications was the only group to see a decline, at 0.06%.

Deputy Director of the GSO’s Price Statistics Department Do Thi Ngoc attributed the June CPI rise to the price hike in petrol, oil, train fares, electricity, household appliances, and package tours due to higher demand in summer.

The group of food registered an increase of 0.36% as consumers moved to using cattle and poultry meat due to the recent phenomenon of mass fish deaths in central localities. Droughts and hot weather affected vegetable cultivation, leading vegetable prices to rise in central and southern provinces.

In June, domestic gold prices fluctuated along with world prices, standing at US$1,545 per tael on June 15, down 0.01% against the previous month, while the VND/USD exchange rate remained stable at around VND22,300 per US dollar.

Core inflation in June was up 0.13% compared to May and rose by 1.88% against the same period of last year. Meanwhile, the figure for the first half of 2016 saw a year-on-year surge of 1.8%.

(Source: NDO)