The average CPIÂ increased by 3.93% in the first four months of 2024 compared to the same period last year; core inflation climbed by 2.81%.
Of the 0.07% increase in the CPIÂ in April 2024 compared to the previous month, eight groups of goods and services saw price increases, while only three groups saw price decreases.
Eight groups of goods and services with price increases:
– Transport: the highest increase of 1.95% (raising the overall CPI by 0.19 percentage points), mainly due to domestic gasoline prices jumping by 4.78%; diesel prices climbing by 2.01% due to price adjustments during the month. Driving license fees increased by 0.26%; vehicle maintenance services rose by 0.47%; vehicle parking fees increased by 1.09% due to high demand. Passenger transport prices via airlines rose by 10.42%; via waterways increased by 0.06%; via roads increased by 0.13%; via buses increased by 0.21%; and via taxis increased by 0.56% due to rising fuel prices. However, new car prices decreased by 0.24%; car and motorbike rental services decreased by 0.1%; and baggage handling services decreased by 0.03%.
– Medicine and healthcare services climbed by 0.92% due to the changing weather, leading to a proliferation of disease-causing viruses and a rapid increase in cases of pneumonia, chickenpox, and hand, foot, and mouth disease, resulting in increased demand for medicines that boost the immune system. Within this group, painkillers, antipyretics, and anti-inflammatory drugs rose by 0.19%; anti-allergy and hypersensitivity drugs increased by 0.13%; and cardiovascular drugs and other items increased by 0.07%.
– Other goods and services increased by 0.27%, mainly due to higher prices for personal items (up 0.6%). Jewelry prices climbed by 5.4% in line with domestic gold prices; watch and jewelry repair services increased by 0.42%; personal services rose by 0.52%; and funeral services increased by 0.12%.
– Housing and construction materials increased by 0.21% due to several factors: Household electricity prices rose by 0.27% due to increased electricity usage as a result of extreme heat in the southern regions; kerosene prices increased by 1.35% following price adjustments during the month; rent prices increased by 0.41% due to increased demand for rental housing; and home maintenance materials increased by 0.29% due to higher prices for sand and steel in line with rising demand. Additionally, household electricity services increased by 0.86%, water services increased by 0.47%, and home repair services increased by 0.35% due to higher material and labor costs. However, gas prices decreased by 1.08% compared to the previous month as domestic gas prices were adjusted down by approximately 5,000 VND per 12 kg cylinder from April 1, 2024, after global gas prices fell by USD 18/ton to USD 617.5/ton compared to the previous month.
– Clothing, hats, and footwear increased by 0.12% due to increased demand for summer items. Footwear services increased by 0.38%; hats increased by 0.17%; various fabrics increased by 0.16%; ready-made clothes increased by 0.13%; and footwear increased by 0.12%.
– Household appliances and equipment increased by 0.11%, with price increases for some items: Vacuum cleaners increased by 0.92% compared to the previous month; electric hand mixers and blenders increased by 0.71%; air conditioners increased by 0.48%; refrigerators increased by 0.34%; and repair services for household appliances increased by 0.41%. Some items saw price decreases compared to the previous month: Kitchen equipment decreased by 0.45%; washing machines decreased by 0.38%; gas stoves decreased by 0.27%; and mattresses decreased by 0.19%.
– Beverages and tobacco increased by 0.09% as hot weather led to increased consumption of soft drinks, with mineral water prices rising by 0.25%; fruit juice increasing by 0.12%; and bottled and canned energy drinks increasing by 0.07%. Alcohol and tobacco prices increased by 0.14% and 0.1%, respectively, compared to the previous month.
– Culture, entertainment, and tourism increased by 0.03%, with prices for package tours and hotels increasing by 0.49% due to increased domestic tourism; while prices for flowers and ornamental plants decreased by 1.26% as weather conditions were favorable and abundant flower harvests led to lower prices for fresh flowers.
Three groups of goods and services with price decreases:
– Food and catering services decreased by 0.13%, with food prices decreasing by 0.63%; beverage prices decreasing by 0.18%; and eating out increasing by 0.21%.
– Postal and telecommunications services decreased by 0.17%, mainly due to promotions and discounts offered by businesses on certain older mobile phone models.
– Education services decreased by 2.93% compared to the previous month, contributing to a 0.18 percentage point decrease in the overall CPI. Educational services decreased by 3.32%, primarily due to the government issuing Decree No. 97/2023/ND-CP on December 31, 2023, amending and supplementing certain articles of Decree No. 81/2021/ND-CP dated August 27, 2021. This decree requires localities to stabilize tuition fees for the 2023-2024 school year at the same level as the 2021-2022 school year for public preschool and general education, leading to tuition fee reductions in some schools.
Core inflation in April 2024 increased by 0.17% compared to the previous month and by 2.79% compared to the same period last year. The average core inflation rate in the first four months of 2024 was 2.81% compared to the same period last year, lower than the average CPI (3.93%), mainly due to increasing prices for food, gasoline, and healthcare services, which are included in the CPI but excluded from the calculation of core inflation.
