On average, for the first eight months of 2024, CPI increased by 4.04% compared to the same period last year, while core inflation rose by 2.71%.
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According to the General Statistics Office’s recently published report, the consumer price index (CPI) for August 2024 remained stable. Out of the 11 main commodity and service groups, 10 witnessed slight price increases, while the transportation group experienced a decrease compared to the previous month.
The ten groups with price increases include:
– Housing, electricity, water, fuel, and construction materials group increased by 0.29%, mainly due to the following reasons: Rent increased by 0.45% as demand for rental properties rose in some localities with the upcoming new school year; gas prices went up by 0.67%, attributable to a domestic price adjustment in line with global gas prices starting from August 1, 2024. Conversely, some items saw a decrease in price compared to the previous month: Fire oil prices dropped by 6.02% due to price adjustments during the month; electricity rates for household consumption fell by 0.76%; and water consumption decreased by 0.17% due to reduced demand during the rainy season and cooler weather.
– Food and catering services group increased by 0.27% (contributing to a 0.09 percentage point rise in the overall CPI), including: Cereals up by 0.19%; food stuffs up by 0.28% (resulting in a 0.06 percentage point increase in the overall CPI); and dining out expenses up by 0.26%.
– The group of other goods and services experienced a 0.2% increase, with prices for administrative and legal services rising by 1.91%; jewelry prices increasing by 1.89%; environmental sanitation services going up by 0.52%; and repairs for watches and jewelry rising by 0.28%. Conversely, prices for wallets, purses, and bags decreased by 0.18%, while watch prices dipped by 0.05%.
– The group of medicine and healthcare services saw a 0.18% increase, with inpatient treatment costs rising by 0.29% and outpatient treatment services increasing by 0.11%. This was due to the continued implementation of new healthcare service prices in some localities during August 2024, in accordance with Circular No. 22/2023/TT-BYT dated November 17, 2023, issued by the Ministry of Health, which unifies health insurance-covered medical examination and treatment prices between hospitals of the same level nationwide and guides the application of prices and settlement of medical examination and treatment expenses in certain cases.
– The group of postal and telecommunications services increased by 0.15%. Specifically, prices for conventional mobile phones rose by 0.52%, while those for fixed-line phones went up by 0.25%.
– Beverages and tobacco group increased by 0.15%, mainly driven by higher consumer demand during the Vu Lan holiday and the peak tourism season: Prices for fruit juices rose by 0.42%; energy drinks increased by 0.29%; smoking products went up by 0.25%; bottled beer prices rose by 0.13%; and liquor prices climbed by 0.12%.
– The education group witnessed a 0.14% increase, with writing instrument prices rising by 0.5%, paper products increasing by 0.45%, and other stationery and educational supplies going up by 0.2%. Additionally, educational service prices rose by 0.13% as some public universities, private high schools, and kindergartens in certain provinces increased their tuition fees for the 2024-2025 academic year.
– Culture, entertainment, and tourism group increased by 0.12%, mainly driven by price increases in the following sub-groups: Overseas tourism services rose by 0.72%; sports and fitness equipment prices went up by 0.38%; hotel and guesthouse rates increased by 0.24%; and prices for movies and concerts rose by 0.16%. Conversely, domestic tourism prices decreased by 0.29% as companies offered discounts to stimulate demand.
– The group of household appliances and utensils increased by 0.09% due to higher labor costs. Specifically, refrigerator repair services rose by 0.64% compared to the previous month; air conditioner repair services increased by 0.59%; household appliance rentals went up by 0.56%; washing machine repair services rose by 0.48%; repairs for motorized equipment increased by 0.45%; beds, cabinets, tables, and chairs became more expensive by 0.24%; hiring domestic helpers cost 0.14% more; and washing machine prices rose by 0.11%. Conversely, some items saw price decreases compared to the previous month as many stores continued to offer promotional programs to boost consumption: Gas stove prices fell by 0.89%; prices for blenders and fruit juicers dropped by 0.47%; mattress prices decreased by 0.15%; electric rice cooker prices dipped by 0.07%; and vacuum cleaner rates became 0.03% lower.
– Clothing, hats, and footwear group increased by 0.05% due to higher demand for back-to-school shopping. Specifically, shoe prices rose by 0.53%; shoe repair services increased by 0.44%; clothing services went up by 0.37%; fabric prices rose by 0.25%; and hat prices climbed by 0.22%. Conversely, the transportation group witnessed a decrease of 1.98% (impacting a 0.19 percentage point reduction in the overall CPI), mainly due to the following factors: Diesel oil prices dropped by 7.05%; domestic gasoline prices fell by 5.83% due to price adjustments during the month; rail passenger transport rates decreased by 4.09%; and used car prices dipped by 0.28%. Additionally, some items within this group experienced price increases: Car parts became 0.4% more expensive; vehicle maintenance services rose by 0.91%; and driving license fees increased by 1.7%.
Core inflation for August 2024 rose by 0.24% compared to the previous month and by 2.53% compared to the same period last year.
On average, for the first eight months of 2024, core inflation increased by 2.71% compared to the same period in 2023, lower than the average CPI increase (4.04%). This was mainly due to the fact that rice, food, electricity, educational services, medical services, and gasoline prices, which are included in the CPI calculation, were excluded from the core inflation basket.
