During the first four months of 2024, the Consumer Price Index (CPI) rose by 3.93% compared to the same period last year. A report on the socio-economic situation by the General Statistics Office indicated that, in the 0.07% increase in the CPI in April 2024 compared to the previous month, eight groups of goods and services saw an increase in their price index, while three groups experienced a decline.
Accordingly, the eight groups of goods and services with an increase in their price index included:
– Transportation, which increased the most at 1.95% (leading to a 0.19 percentage point increase in the overall CPI), primarily due to: A 4.78% increase in domestic gasoline prices; a 2.01% increase in diesel prices due to the impact of price adjustments during the month.
In addition, the cost of obtaining a driver’s license increased by 0.26%; the price of vehicle maintenance services rose by 0.47%; and parking fees increased by 1.09% due to high demand. Passenger transportation prices increased by 10.42% by air; 0.06% by water; 0.13% by road; 0.21% by bus; and 0.56% by taxi due to the increase in 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%.
– Pharmaceuticals and medical services increased by 0.92% due to the changing weather, an increase in disease-causing viruses, and a rapid increase in cases of pneumonia, chickenpox, and hand, foot, and mouth disease, leading to a greater demand for medicines that boost the immune system.
– Other goods and services increased by 0.27%, mainly due to an increase in the prices of personal care items (0.6%). Within this category, jewelry prices increased by 5.4% in line with domestic gold prices; watch and jewelry repair services increased by 0.42%; personal care services increased by 0.52%; and funeral services increased by 0.12%.
– Housing and construction materials increased by 0.21%. This was caused by a 0.27% increase in residential electricity prices due to increased electricity consumption during the intense heat in the southern regions; a 1.35% increase in kerosene prices due to price adjustments during the month; a 0.41% increase in rent prices due to increased demand for rental housing; and a 0.29% increase in home maintenance materials due to higher demand for sand and steel. Additionally, residential 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.
In contrast, gas prices decreased by 1.08% compared to the previous month, as domestic gas prices were adjusted downward by approximately 5,000 VND/12 kg cylinder from April 1, 2024, following an $18/ton decrease in global gas prices to $617.5/ton.
– Clothing, hats, and footwear increased by 0.12% due to increased demand for certain items during the summer. Within this category, footwear services increased by 0.38%; hats increased by 0.17%; various fabrics increased by 0.16%; ready-made clothing increased by 0.13%; and footwear increased by 0.12%.
– Household equipment and appliances increased by 0.11%, with price increases for some items including: Vacuum cleaners (0.92% compared to the previous month); electric mixers and blenders (0.71%); air conditioners (0.48%); refrigerators (0.34%); and household appliance repair services (0.41%).
– Beverages and tobacco products increased by 0.09% due to the hot weather leading to increased demand for refreshing beverages. Within this category, mineral water increased by 0.25%; fruit juices increased by 0.12%; and bottled and canned energy drinks increased by 0.07%. Liquor and tobacco prices increased by 0.14% and 0.1%, respectively, compared to the previous month.
– Culture, entertainment, and tourism increased by 0.03%, including: A 0.49% increase in package tours and hotel prices due to increased domestic tourism; and a 1.26% decrease in flowers and ornamental plants due to favorable weather conditions and an abundance of flowers during the season, leading to a sharp decrease in fresh flower prices.
Increase/decrease in CPI in April 2024 compared to the previous month. Source: General Statistics Office
Conversely, three groups of goods and services experienced a decrease in their price index:
– Food and catering services decreased by 0.13%. Within this category, food decreased by 0.63%; prepared food decreased by 0.18%; and eating out increased by 0.21%.
– Postal and telecommunications services decreased by 0.17%, mainly due to promotional discounts offered by businesses on certain older mobile phone models.
– Education decreased by 2.93% compared to the previous month, contributing to a 0.18 percentage point decrease in the overall CPI. Within this category, education services decreased by 3.32%. This was primarily due to the government issuing Decree No. 97/2023/ND-CP on December 31, 2023, amending and supplementing a number of articles of Decree No. 81/2021/ND-CP dated August 27, 2021, requiring localities to maintain stable tuition fees for the 2023-2024 academic year at the same level as the 2021-2022 academic year for public preschool and primary education. Consequently, some schools have adjusted tuition fees downward after initially collecting fees in accordance with Decree No. 81/2021/ND-CP.
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. During the first four months of 2024, core inflation increased by 2.81% compared to the same period last year, lower than the average overall CPI (3.93%), primarily because food, fuel, and medical services, which are factors contributing to CPI increases, are excluded from the calculation of core inflation.
