The CPI for the first eleven months of 2024 saw an average increase of 3.69% compared to the same period last year, with core inflation rising by 2.7%.
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The 0.13% rise in the CPI for November 2024, compared to the previous month, was influenced by eight groups of goods and services that witnessed an increase in their price indices, while three groups experienced a decrease.
The eight groups of goods and services that saw an increase in their price indices include:
– The group of housing, electricity, water, fuel, and construction materials recorded the highest increase of 0.87%. This was primarily driven by price hikes in several items: A 3.57% increase in kerosene prices due to multiple adjustments during the month; a 2.25% rise in gas prices following a domestic price adjustment on November 1, 2024, in line with global gas prices; a 0.62% increase in home repair services due to heightened demand during the year-end; a 0.45% rise in rental prices as a result of escalating real estate and apartment prices; a 0.28% increase in home maintenance material prices, influenced by rising cement and steel costs, compounded by increases in electricity, coal, and packaging prices; and a 2.03% surge in electricity prices for household use, attributed to a retail electricity price adjustment by the Vietnam Electricity Group (EVN) on October 11, 2024. Conversely, water supply prices decreased by 0.43% as the transition to winter weather led to reduced consumption.
– The group of other goods and services witnessed a 0.29% increase, including: A 2.35% rise in jewelry prices, tracking domestic gold prices; a 0.12% increase in watch repair services; a 0.1% rise in personal care services; and a 0.07% increase in environmental sanitation services.
– The group of beverages and tobacco experienced a 0.26% increase, largely driven by rising production input costs and an appreciation of the US dollar. Specifically, fruit juice prices increased by 0.52%, carbonated soft drinks by 0.45%, mineral water by 0.42%, tobacco by 0.33%, liquor by 0.29%, and beer by 0.1%.
– The group of clothing, hats, and footwear saw a 0.21% increase due to rising labor and material costs, as well as increased demand during the seasonal transition. This included a 0.5% rise in shoe services, a 0.41% increase in fabric prices, a 0.27% rise in clothing services, a 0.23% increase in ready-made garments, and a 0.22% rise in hat prices.
– The group of culture, entertainment, and tourism witnessed a 0.2% increase, mainly driven by items such as newspapers, which increased by 0.66%; movie and music performances, up by 0.47%; potted plants and flowers, rising by 0.41%; sports services, increasing by 0.29%; and children’s toys, up by 0.18%.
– The group of education saw a 0.11% increase, with educational services rising by the same percentage due to tuition fee hikes in some private kindergartens, colleges, vocational schools, junior colleges, universities, and postgraduate institutions. Additionally, Thai Nguyen and Dong Thap implemented policies to waive or reduce tuition fees to support their residents. Moreover, paper product prices increased by 0.28%, while stationery and other school supplies rose by 0.23%, and writing instruments by 0.18%.
– The group of household appliances and utensils saw a 0.08% increase due to heightened demand during the wedding season and the transition to winter. This included a 0.51% rise in plastic and rubber goods, a 0.49% increase in household appliance rentals, a 0.32% rise in gas stoves, a 0.29% increase in other electrical appliances and beds, tables, and chairs, a 0.23% rise in both water heaters and kitchen equipment, a 0.18% increase in household appliance repair services, a 0.14% rise in voltage stabilizers, and a 0.11% increase in domestic worker hiring. Additionally, household textiles rose by 0.1%, and glass, ceramic, and porcelain goods increased by 0.18%.
– The group of medicine and healthcare services experienced a 0.05% increase due to seasonal changes and a rise in flu and respiratory illnesses, leading to increased demand for painkillers, fever reducers, respiratory medications, vitamins, and minerals. Specifically, painkillers and fever reducers increased by 0.27%, digestive system medications rose by 0.12%, cardiovascular drugs by 0.07%, and vitamins and minerals by 0.07%.
The three groups of goods and services that saw a decrease in their price indices include:
– The group of transportation recorded a 0.07% decrease due to a reduction in air passenger transport prices by 11.04% and a 4.1% drop in rail passenger transport prices, reflecting lower demand. Additionally, gasoline prices decreased by 0.14% compared to the previous month, while used car prices fell by 0.13% and new car prices by 0.04%. Conversely, some items within this group experienced price increases: Diesel prices rose by 2.96% due to multiple adjustments during the month; lubricants increased by 0.1%; motorcycle repair services rose by 1.03%; bicycle repair services by 0.55%; motorcycle spare parts by 0.27%; motorcycle tires and tubes by 0.25%; motorcycles by 0.24%; bicycle tires and tubes by 0.21%; bicycle spare parts by 0.15%; and bicycles by 0.14%.
– The group of food and catering services saw a 0.22% decrease, with a 0.33% increase in the price index for cereals, a 0.5% decrease in food prices (contributing to a 0.1-percentage point reduction in the CPI), and a 0.26% increase in the price index for dining out.
– The group of postal and telecommunications services witnessed a 0.3% decrease, with prices of conventional mobile phones falling by 0.99%, smart mobile phones and tablets by 0.46%, fixed-line phones by 0.04%, and smart mobile phone and tablet accessories by 0.03%. Conversely, telephone repair services rose by 0.47% due to higher labor costs.
Core inflation for November 2024 increased by 0.24% compared to the previous month and by 2.77% compared to the same period last year. For the first eleven months of 2024, core inflation rose by 2.7% compared to the same period in 2023, lower than the average CPI increase (3.69%). This was mainly due to price hikes in food, electricity, educational services, and healthcare services, which are included in the CPI but excluded from the core inflation calculation.
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