CPI in October rises 0.41% due to impacts of storms, floods

The consumer price index (CPI) in October increased by 0.41% from the previous month, largely driven by the impacts of the storms and historic floods in northern and central Vietnam in early September.

Illustrative Image (Photo: Thai Thien).

According to the General Statistics Office (GSO), price hikes were witnessed in all of the 11 main baskets of goods and service with the highest growth of 2.14% reported in medicines and healthcare, followed by fuels (1.44%), housing and construction materials (0.63%), transport (0.61%), food and catering services (0.31%), and education (0.19%).

In addition to the impacts caused by the storms, excessive demand for food, particularly in large cities, during the current wedding season was also behind the surge, said Do Thi Ngoc, Director of the GSO’s Price Statistics Department.

Furthermore, the Ministry of Health had issued a circular stating that people without health insurance or insured citizens who have opted for out-of-pocket payment would have to pay the full, non-subsidised cost of treatment, starting from June this year.

The decision, scheduled to come into effect in Ho Chi Minh City and 14 other provinces from October, coupled with an increase in service prices at private clinics in the Central Highlands provinces of Kon Tum and Gia Lai triggered a 2.79%price rise in healthcare.

Total average CPI for the first 10 months of 2017 has posted an annual increase of 3.71%.

Core inflation in October, which excludes foods and beverages, and energy and State-controlled services such as healthcare and education, rose by 0.06% from the last month and 1.32% annually.

(Source: NDO)