Rising fuel, electricity, and healthcare costs pushed the CPI up in July.

According to the report on the socio-economic situation in July and the first seven months of 2024 by the General Statistics Office ( Ministry of Planning and Investment ), in July, the consumer price index (CPI) increased by 0.48% compared to the previous month, increased by 1.89% compared to December 2023, and increased by 4.36% compared to the same period last year.

The General Statistics Office explained that the main reasons for the increase in the CPI in July were the rise in domestic gasoline and diesel prices in line with world prices, increased demand for household electricity, and the adjustment of health insurance contributions based on the new minimum wage.

On average, the CPI increased by 4.12% in the first seven months of 2024 compared to the same period of the previous year.

According to the General Statistics Office, in the 0.48% increase in the CPI in July compared to the previous month, 10 groups of goods and services saw price increases; only the postal and telecommunications group maintained stable prices.

The increase in domestic fuel prices, following global prices, is one of the main reasons for the rise in the CPI in July. Photo: Nguyen Hue

Specifically, the group of other goods and services increased by 3.77%, mainly due to a 28.45% increase in health insurance prices as the basic salary was adjusted from VND 1.8 million/month to VND 2.34 million/month. In addition, the price of elderly care services increased by 2.5% compared to the previous month; watch and jewelry repair increased by 0.47%; personal care products increased by 0.24%; and environmental sanitation services increased by 0.3%.

The transportation group increased by 1.45%, mainly due to a 4.07% increase in diesel prices; domestic gasoline prices increased by 3.55% due to price adjustments during the month.

Passenger transport prices increased by 20.44% by air, 4.4% by rail, 0.04% by road, and 0.01% for combined passenger transport due to increased travel demand during the summer. Auto parts prices increased by 0.15%; bicycle tires and inner tubes increased by 0.31%; and motorcycle tires and inner tubes increased by 0.09%. Vehicle maintenance service prices increased by 0.24%; car and motorcycle rental fees increased by 0.15%; and driving license training fees increased by 0.17% due to high demand.

The housing, electricity, water, fuel, and building materials group increased by 0.5%, mainly due to a 1.39% increase in household electricity prices and a 0.22% increase in household water prices.

The food and beverage group increased by 0.26% (contributing 0.09 percentage points to the overall CPI). Within this group, food prices decreased by 0.03%; food prices increased by 0.31% (contributing 0.07 percentage points to the overall CPI), and dining out increased by 0.25%.

The culture, entertainment, and tourism group increased by 0.14%. Within this group, the price of package tours increased by 0.23%; and guesthouses and hotels increased by 0.43% due to the high demand for travel from agencies, businesses, and families during the July summer break for students.

The group of medicines and medical services increased by 0.13%. Within this, the price of inpatient medical examinations and treatments increased by 0.19%, and outpatient medical examinations and treatments increased by 0.08%.

The beverages and tobacco group increased by 0.11% due to increased consumer demand during hot weather. Specifically: the price of carbonated soft drinks increased by 0.22%; fruit juices increased by 0.16%; beer and energy drinks (bottled, canned, and boxed) both increased by 0.08%; and alcoholic beverages increased slightly by 0.02%. The price of cigarettes increased by 0.2% compared to the previous month.

The household appliances and furnishings group increased by 0.07% due to rising labor costs.

The clothing, headwear, and footwear group increased by 0.03% due to rising transportation and labor costs. Specifically, footwear service prices increased by 0.37%; garment services by 0.21%; fabrics by 0.19%; headwear by 0.16%; and footwear by 0.07%.

The education group increased by 0.02%. Within this group, the price of paper products increased by 0.4%, writing instruments by 0.15%, and textbooks by 0.05%.

The postal and telecommunications sector maintained stable prices due to businesses and establishments continuing to implement promotional programs to stimulate consumer spending. Specifically, prices for smartphones and tablets decreased by 0.39% compared to the previous month, while phone repair prices increased by 0.19%.

Meanwhile, core inflation in July rose 0.36% compared to the previous month, and increased 2.61% compared to the same period last year.

On average, in the first seven months of 2024, core inflation increased by 2.73% compared to the same period in 2023, lower than the overall CPI average (4.12%), mainly due to the increase in prices of food, electricity, education services, healthcare services, and gasoline, which are factors contributing to the CPI increase but are excluded from the list of items used to calculate core inflation.

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Source: https://vietnamnet.vn/chi-phi-xang-dau-dien-y-te-day-cpi-thang-7-tang-2306598.html