Home / Economy / Banking & Finance
Vietnam's cost of living rises 0.4% in July
Ngoc Mai 16:45, 2020/07/29
Core inflation rose 2.74% year-on-year in the first seven months of 2020.

Vietnam's consumer price index (CPI), the main gauge of inflation, in July increased 0.4% against the previous month, but dipped 0.19% versus the end of 2019, the lowest rate recorded in 2016 – 2020, according to the General Statistics Office (GSO). 

 Data: GSO. Chart: Ngoc Mai. 

Increases in prices of petroleum products and a surge in demand for electricity and water led to an expansion of the CPI in July, stated the GSO.

Overall, the CPI in the first seven months of this year increased by 4.07% year-on-year.

Nine out of 11 commodity groups that are components of the basket for CPI calculation witnessed month-on-month increases in prices. Among them, transportation posted the sharpest increase of 3.91%, mainly due to petroleum price hikes on June 27, contributing 0.37 percentage points to the overall growth of CPI.

Other groups that saw their prices up in July were housing, water and electricity supply, and construction materials (0.47%); culture, entertainment, and tourism (0.3%); household equipment and appliances (0,07%); garment, footwear and hats (0,06%); beverages and cigarettes (0.02%); medicine and healthcare services (0.02%); education (0.02%); and other goods and services (0.17%).

 Vietnam's CPI in July against the end of previous year. Data: GSO. Chart: Ngoc Mai. 

The two groups that saw their prices down in July were food and catering services (-0.18%), and post and telecommunications (-0.02%).  

According to the GSO, core inflation in July went down 0.09% month-on-month, resulting in an increase of 2.31% year-on-year and a rise of 2.74% in the January – July period compared to the same period of 2019.

Domestic gold prices continued the growing trend due to global uncertainties. Meanwhile, low interest rates and risky corporate bonds prompted investors to turn to gold as a safe investment option.

In July, gold prices increased 3.49% month-on-month, 20.89% against last December and 28.57% year-on-year.

TAG: Vietnam CPI consumer price index covid-19 coronavirus nCoV pandemic inflation July gold prices uncertainties gso
Other news
13:37, 2020/37/12
Strong liquidity in Vietnam stock markets boosts stock exchanges revenue
The average liquidity for a trading session in the first half of 2020 rose 24% year-on-year to VND5.8 trillion (US$250 million).
10:20, 2020/20/10
Large growth potential for Vietnam banking services in long-term
Many listed banks witnessed weak performance of fee income growth in the first six months of the year due to the Covid-19 pandemic.
12:56, 2020/56/09
Vietnam c.bank to finalize legal framework for fintech, digital banking
The government is responsible for not only promoting innovation in the banking sector, but also maintaining stability and safety of the financial market.
11:10, 2020/10/09
Vietnam benchmark Vn-Index expected to surpass June’s peak to 920 in Sept
The recent uptick of the market, however, is not sustainable, when the margin outstanding may have increased sharply along with the rise.
17:27, 2020/27/08
Vietnam 2020 government debt to stay in line with current sovereign rating: Fitch
Fitch Rating is still maintaining its growth forecast for Vietnam at 2.8% in 2020 and 7.5% in 2021, despite the Covid-19 resurgence in late July.
14:15, 2020/15/07
USD/VND rate expected to remain stable until year-end
In addition to a weakening US dollar, the ample supply of dollars thanks to Vietnam’s record trade surplus is a major factor that could keep a stable USD/VND exchange rate.