The increase in prices of input materials affects production costs, causing the prices of consumer goods and services to increase; price of petrol increased according to world prices; the increase in the price of electricity and water for a living according to consumer demand were the main reasons for the consumer price index (CPI) in May 2021 to increase by 0.16% compared to the previous month, went up by 1.43% compared to December 2020 and rose by 2.9% compared to May 2020. On average, in the first 5 months of 2021, CPI increased by 1.29% over the same period last year, the lowest increase since 2016[1]; core inflation in 5 months increased by 0.82%.
In the increase of 0.16% of the consumer price index (CPI) in May 2021 compared to April 2021, there were 8 groups of goods and services that have increased price indexes and 3 groups of goods and services have decreased price indexes. Transport group had the highest increase of 0.76% (making overall CPI increased by 0.07 percentage points) due to the impact of adjustments in petrol and oil prices on April 27th, 2021 and May 12nd, 2021 made petroleum price index increased by 2.12%, diesel oil increased by 2.8%. Housing and construction materials increased by 0.4% (making the general CPI increased by 0.08 percentage points) due to the price of housing maintenance materials increased by 2.93%, increased by the price of input materials[2]; besides, the price of electricity and water for a living increased by 2.54% and 1.27% respectively due to increased consumer demand; price of kerosene rose by 5.07%. Beverage and cigarettes and household appliances both rose by 0.09%, mainly due to the hot weather in the summer, which increased the demand for beverages and consumption of items such as refrigerators, air conditioners and electric fans. Food and catering services went up by 0.04% (making overall CPI up 0.01 percentage points), of which: Food fell by 0.09%[3]; foodstuff fell by 0.05%[4]; outdoor eating and drinking increased by 0.31% mainly because there was a holiday on April 30th – May 1st. Education group went up by 0.03%, in which the price of stationery increased by 0.25%. Medicine and medical service group grew by 0.01% mainly due to the complicated developments of the Covid-19 epidemic spreading in many localities, people increased their purchase of drugs to strengthen the immune system, causing the price of drugs to increase by 0.03%. Other goods and services increased by 0.06%. The price index of goods and services groups decreased: Culture, entertainment and tourism group affected by the Covid-19 epidemic decreased by 0.23% mainly because the price of package tours decreased by 0.7%, besides, the price of ornamental plants and flowers decreased by 2.05% due to favorable weather, in the blooming season. Postal services and telecommunications went down by 0.15%, mainly due to businesses promoting discount promotion programs for old models of mobile phones. Garments, hats and shoes declined by 0.01%.
Core inflation in May 2021 increased by 0.15% over the previous month and increased by 1.13% over the same period last year. The average core inflation of the first 5 months of 2021 grew by 0.82% compared to the same period of 2020.
The domestic gold price moved in the same direction as the world gold price. The average world gold price as of May 25th, 2021 increased by 4.38% compared to April 2021. Digital currencies plummeted, money flow tended to pour into the gold market; the USD and 10-year US government bond yields continued to decline, which were the factors that created momentum for gold’s Price to increase. Besides, investors’ concerns about the financial situation of the US and European countries also increase the attractiveness of gold. Domestically, the gold price index in May 2021 decreased by 1.68% over the previous month; fell by 0.88% over December 2020 and increased by 13.02% over the same period last year.
The US dollar in the world market fell due to investors’ concerns about rising US inflation. Domestically, the foreign currency reserve of the State Bank of Vietnam is abundant to meet the foreign currency demand of importing enterprises. The US dollar price index in May 2021 decreased by 0.21% over the previous month; went down by 0.02% over December 2020 and decreased by 1.15% over the same period last year.
[1] The average CPI growth rate in the first 5 months of the year compared to the same period last year in 2016-2021: 1.59%; 4.47%; 3.01%; 2.74%; 4.39%; 1.29% respectively.
[2] The high price of raw materials on the world market, along with the increase in domestic construction demand, made the price of input materials for the production of cast iron, iron and steel products in May 2021 increased by 4.83% compared to the previous month and by 7.26% compared to May 2020, the average in the first 5 months of 2021 increased of 7.76% compared to the same period last year.
[3] The price of rice fell 0.19% due to abundant supply in the southern provinces and a decrease in export rice prices.
[4] The price of pork decreased by 1.61% (making the general CPI decreased by 0.05 percentage points) as African swine fever was controlled, pork supplies are guaranteed; prices of processed products from pork decreased (prices of roast meat, spring rolls decreased by 0.58%, pork fats decreased by 3.45%); prices of poultry decreased by 0.1%. In the opposite direction, the price of fresh seafood increased by 0.07%; the price of processed seafood increased by 0.03%; chicken’s price increased by 0.09%; prices of fresh, dried and processed vegetables increased by 2.62%.