Consumer price index in January 2021 increased by 0.06% compared with December 2020 and decreased by 0.97% compared to January 2020. The main reason was that January 2021 is the month before Tan Suu Lunar New Year, so the shopping demand of people increased. The price of food, foodstuff, outdoor eating and dringking increased and the price of domestic petroleum, gas increased according to the price of world fuel. However, this is the lowest level increase in January of the years in the period 2017-2021[1].
In January, the transport group had the highest increase of 2.29% compared to the previous month (making the overall CPI grew by 0.22%) mainly due to the impact of 2 upward adjustments of petrol and oil price on January 11st, 2021 and on January 26th, 2021, the petroleum price index increased by 6.07%. Besides, the price of new cars increased by 0.1%; motorbike increased by 0.15%, prices of spare parts increased by 0.06%, prices of vehicle maintenance services increased by 0.07% due to the demand for shopping and repair vehicle at the end of the year increased.
To prepare for the upcoming Lunar New Year, price indexes of some commodity groups increased compared to the previous month. Food and catering services increased by 0.64% mainly due to consumer demand increased. Food group increased by 0.83% due to the increase of 1.04% in rice price (making the overall CPI grew by 0.03%). The domestic rice price increased in line with the export rice price due to the increase in demand for imported rice from China, ASEAN, Africa … in the context of a complicated Covid-19 epidemic. Along with that, the demand for delicious non-glutinous rice and glutinous rice increased, causing rice prices to increase, in which: sticky rice increased by 0.69%; delicious non-glutinous rice rose 0.81%; ordinary rice increased 1.11%. Other processed food products also increased slightly: Vermicelli increased by 0.44%; prices of dry noodles, instant noodles and instant noodles increased by 0.11% -0.93%.
The foodstuff group increased by 0.81%, mainly due to the increase of 4.74% in the price of pork, of which in urban area increased by 4.08%; in rural areas increased by 5.19%. Although pig farming continued its recovery momentum when the total number of pigs in the whole country in January 2021 increased by 16.2% over the same period last year, but due to the increased demand for pork for the production of sausages, Chung cake and other processed products to prepare for the Lunar New Year, so the price of live pork in the whole country fluctuates between 80,000 VND/kg – 86,000 VND/kg, an increase of 3,000 VND/kg – 6,000 VND/kg compared to the previous month. Accordingly, the price of products processed from pork increased: The price of roast meat and sausages increased by 1.91%; animal organs increased by 2.96%; pork fat increased by 5.36% over the previous month. In addition, the price indexes of some other food items also increased compared to the previous month, of which: The price of fresh poultry meat increased by 0.97% due to the demand party of people at the end of the year, with the preparation of the Lunar New Year; prices of fresh seafood and aquatic products increased by 0.94%. Prices of some fruits increased like bananas by 0.95%; apple increased by 1.17%; mango increased by 4.28% due to supply to the market decreased when farmers and farms waited until the Lunar New Year to harvest; prices of confectionery and candy increased by 0.37%. The outdoor eating and dringking increased 0.15%.
In addition, price indexes of some commodity groups increased compared to the previous month, such as: Garments, hats and shoes grew by 0.44% due to the need to buy clothes and shoes increased when the weather continued extremely cold and damaging in the northern provinces and the increasing demand for shopping during Tet holidays. Education group grew by 0.33% because Da Nang city recovered educational fees from January 2021 after implementing Resolution No. 309/NQ-HDND dated on July 8th, 2020 of the People’s Council of Da Nang city on tuition fee support, in which the education service price index increased by 0.38% (making the overall CPI increase by 0.02%). Beverage and cigarette increased by 0.32% due to consumer demand and as gifts for Tet; household appliances and culture, entertainment and tourism group also grew by 0.08%; medicine and medical service group went up by 0.01%; other goods and services increased by 0.24%.
[1] CPI growth rates in January compared to December of the previous year in period of 2017-2021 are respectively: 0.46%; 0.51%; 0.1%; 1.23%; 0.05%. The growth/decrease of CPI in January over the same period last year in period of 2017-2021 respectively: up 5.22%; up 2.65%; up 2.56%; up 6.43%; down 0.98%.