Compared to December 2022, the CPI in July 2023 increased by 1.13% and compared to the same period last year, it increased by 2.06%. On average for the first seven months of 2023, the consumer price index (CPI) increased by 3.12% compared to the same period last year; core inflation increased by 4.65%.

In the 0.45% increase in the CPI in July 2023, 10 groups of goods and services saw price increases and 1 group saw a decrease. Specifically, the 10 groups with price increases included: Other goods and services (up 2.84%), housing and construction materials (up 0.51%), transportation (up 0.11%),... while the postal and telecommunications group saw a decrease of 0.12%.

Rising electricity and food prices caused the Consumer Price Index (CPI) to increase by 0.45% in July. (Illustrative image)

The General Statistics Office pointed out the factors contributing to the increase in the CPI during the first seven months of 2023; these are: The average price index for the education group in the first seven months of 2023 increased by 7.61% compared to the same period last year due to some localities raising tuition fees again from September 2022 after having waived or reduced tuition fees in the 2021-2022 school year.

For the housing and construction materials group, prices increased by 6.58% year-on-year, due to rising prices of cement, iron, steel, and sand, driven by increased input material costs and higher housing rental prices. The other goods and services group increased by 3.71% year-on-year, mainly due to the increase in health insurance premiums from July 2023, following the increase in the base salary.

The price index for the culture, entertainment, and tourism group increased by 3.45% due to the control of the Covid-19 pandemic and increased demand for entertainment and tourism among the population.

In addition, airfare prices increased by 67.87%; train fares increased by 31.34%; and bus fares increased by 9.83% due to increased demand for travel during holidays, Tet (Lunar New Year), and the summer season.

Furthermore, food prices increased by 3.34%, mainly due to increased consumer demand during holidays and Tet (Lunar New Year), contributing 0.71 percentage points to the CPI increase. Household electricity prices increased by 3.79% due to increased electricity demand and EVN's decision to raise electricity prices by 3%, effective from May 4, 2023. Domestic rice prices increased by 2.4%, following export rice prices…

However, alongside factors that increased the CPI, there were also factors that decreased the CPI in the first seven months of 2023, such as: on average, kerosene prices decreased by 12.41% compared to the same period last year; domestic gasoline and diesel prices decreased by 19.32% due to fluctuations in world prices; domestic gas prices decreased by 11.44% due to world prices; and the postal and telecommunications price index decreased by 0.45% due to lower prices of older generation mobile phones.

According to the General Statistics Office, in July, domestic gold prices fluctuated in the same direction as world gold prices. As of July 25, 2023, the average world gold price was $1,951.89 per ounce, down 0.62% compared to June 2023 due to market expectations that the US Federal Reserve (Fed) would raise the benchmark interest rate by 0.25 percentage points, putting pressure on gold prices. Domestically, the gold price index in July 2023 decreased by 0.03% compared to the previous month; increased by 3.27% compared to December 2022; increased by 3.39% compared to the same period last year; and the average for the first seven months of 2023 increased by 1.06%.

The US dollar price index increased by 0.53%. Globally, the US dollar fluctuated, rising and falling as inflation in the US cooled and positive news from the US labor market influenced the situation. As of July 25, 2023, the US dollar index in the international market reached 101.07 points, down 1.86% from the previous month.

Domestically, the average US dollar exchange rate on the free market is around 23,787 VND/USD. The US dollar price index in July 2023 increased by 0.53% compared to the previous month; decreased by 1.71% compared to December 2022; increased by 1.04% compared to the same period last year; and the average for the first seven months of 2023 increased by 2.39%.

According to the General Statistics Office, core inflation in July 2023 increased by 0.36% compared to the previous month and by 4.11% compared to the same period last year. On average for the first seven months of 2023, core inflation increased by 4.65% compared to the same period in 2022, higher than the overall CPI increase (3.12%).

The main reason is that the average domestic gasoline and diesel prices in the first seven months of 2023 decreased by 19.32% compared to the same period last year, and gas prices decreased by 11.44%. These factors restrained the rate of increase in the CPI, but are excluded from the list of items used to calculate core inflation.

Text and photos: VNA

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