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.