Consumer price index, gold and USD price indexes in October of 2022

Rent increased again due to the high demand of the people, and some localities increased tuition fees for the 2022-2023 new school year, making the consumer price index (CPI) in October 2022 increase by 0.15% compared to the previous month. CPI in October 2022 increased by 4.16% and over the same period last year by 4.3% compared to December 2021.

On average in 10 months of 2022, CPI increased by 2.89% over the same period last year; core inflation increased by 2.14%.

In the increase of 0.15% of CPI in October 2022 compared to the previous month, there were 9 groups of goods and services with an increase in the price index and 2 groups of goods with a decrease in the price index.

(1) Nine groups of goods and services with increasing price indexes include:

– The education group had the highest increase with 2.35%, of which the education service price index increased by 2.64% compared to the previous month because some provinces and centrally-run cities increased tuition fees for the new school year 2022-2023[1] for public preschools, high schools and continuing education in the area. In addition, some non-public educational institutions must be self-sufficient in funding to adjust the increase in tuition fees in accordance with regulations. In addition, in the new school year, the demand for books and school supplies increases. Textbook prices increased by 0.29%; the price of notebooks and writing papers of all kinds increased by 0.09%; pens of all kinds increased by 0.18% over the previous month.

– Housing and construction materials increased by 0.69% (making the overall CPI increase by 0.13 percentage points) because students started going to school, so the demand for rental housing increased, causing housing rent to increase by 8.85 %; housing repair service prices increased by 0.49% due to the increase in wall painting, bricklaying, wall construction, unskilled labor, and high construction demand; price of housing maintenance materials increased by 0.08% because the price of cement, bricks, concrete bricks, roofing sheets, wall paint increased according to the price of input materials for production. In the opposite direction, the price of electricity and water for daily life decreased by 0.4% and 0.11% respectively due to reduced demand; gas price decreased by 3.95% compared to the previous month because from October 1st, 2022, the domestic gas price was adjusted down by 18,000 VND/12 kg cylinder after the world gas price decreased by 65 USD/ton (from 640 USD/ton to 575 USD/ton); kerosene price decreased by 5.07% over the previous month due to the impact of price adjustments on October 3rd, 2022, October 11th, 2022 and October 21st, 2022.

– Beverage and cigarettes increased by 0.34% due to the high price of beverage production materials and the USD exchange rate [2].

– Garments, hats, and shoes increased by 0.2% due to the increase in the price of production materials, labor costs, and the demand for winter clothes.

– Food and catering services increased by 0.13% (making CPI increase by 0.04 percentage points), of which: Food increased by 0.13%[3] (making CPI increase by 0.005 percentage points); foodstuff increased by 0.1%[4] (making CPI increase by 0.02 percentage points); outdoor eating and drinking increased by 0.21% (making the overall CPI increase by 0.02 percentage points) due to high prices of processed materials.

– Household appliances increased by 0.12%, mainly focusing on items such as The price of electric lights for lighting and metal utensils both increased by 0.34%; egg beaters increased by 0.28%; computers and accessories by 0.25%; soap and detergent increased by 0.2%; beds, cabinets, tables and chairs increased by 0.18%; gas stove increased 0.13%… In the opposite direction, the price of blenders and juicers decreased by 1.09%; electric irons were down 1.74%; kitchen equipment decreased by 1.86%.

– Medicine and medical service group and Culture, entertainment, and tourism groups both increased by 0.06%.

– Other goods and services increased by 0.23%, mainly focusing on jewelry, which increased by 0.46%; hair cutting and shampooing increased by 0.61%; elderly care services increased by 0.69%; electric appliances for personal care increased by 0.32%.

 (2) Two groups of goods and services have decreased price index:

– Transport group decreased by 2.17% (making the general CPI decrease by 0.21 percentage points) due to the influence of domestic petrol price adjustments on October 3rd, 2022, and October 11st, 2022; October 21st, 2022 and also the influence from the downward adjustment in September 2022, making gasoline price decreased by 5.99%; diesel prices fell 0.6%. In the opposite direction, the price of motorbikes; automotive parts; tires and tubes of motorcycles; bicycle tires and tubes continued to increase by 0.31%; 0.15%; 0.28%; 0.73% respectively due to increased demand and limited supply.

– Postal services and telecommunications decreased by 0.06%.

Core inflation[5] in October 2022 increased by 0.45% over the previous month, and by 4.47% over the same period last year. On average, in 10 months of 2022, core inflation increased by 2.14% compared to the same period in 2021, lower than the general average CPI (up 2.89%), this reflects consumer price fluctuations mainly due to food prices and gasoline prices.

The domestic gold price fluctuated opposite to the world gold price. As of October 25th, 2022, the average world gold price stood at 1,766.26 USD per ounce, down 0.66% compared to September 2022 due to investors’ concerns that the US Federal Reserve (FED) will raise interest rates by 75 basis points at two meetings in November and December this year, causing the USD to appreciate strongly against other currencies, leading to an increase in US bond yields and world gold prices may be at a disadvantage. Domestically, the gold price index in October 2022 increased by 0.5% over the previous month; an increase of 4.8% over the same period in 2021; 10 months of 2022 average increase of 6.08%.

The US dollar in the world market increased after the FED raised interest rates and it is likely that the FED will continue to tighten monetary policy for a long time. As of October 25th, 2022, the US dollar index on the international market reached 112.24 points, an increase of 1.35 points compared to the previous month. Domestically, the average US dollar price on the free market is around 24,080 VND/USD. The US dollar price index in October 2022 increased by 1.84% over the previous month and by 5.42% over the same period in 2021; 10 months of 2022 average increase of 1.17%.

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[1] The growth rate of the price index of educational services in October compared to the previous month of some localities: Khanh Hoa increased by 83.56%; Lai Chau increased by 56.18%; Nam Dinh increased by 51.72%; Ninh Thuan increased by 47.49%; Binh Thuan increased 45.47%; Phu Yen increased by 39.48%; Thai Binh increased by 37.19%; Dong Thap increased by 25.18%; Thanh Hoa increased by 18.4%; Bac Lieu increased by 10.31%; Ha Giang increased by 9.37%; Tien Giang increased by 8.28%.

[2] The price of mineral water increased by 0.44% compared to the previous month; carbonated beverage prices increased by 0.48%; bottled energy drinks increased by 0.25%; alcohol increased by 0.44% and smoking increased by 0.2%.

[3] The price index of instant noodles, noodles, pho, and porridge increased by 0.34%; flour by 0.26%; corn flour by 0.88%; corn by 1.01%; vermicelli increased by 0.2%; bread increased by 0.74%; instant cereals increased by 0.32% due to the increase in input prices. Particularly, the rice price index decreased by 0.02% because the localities had finished harvesting the summer-autumn paddy crop, so the supply was abundant.

[4] Due to the influence of the circulation of storm No. 5, tropical depression combined with cold air caused heavy rain in many localities, inundating many crop areas and causing difficulties for marine fishing activities, making some items increase in price: The price of fresh seafood increased by 0.31%; prices of fresh, dried and processed vegetables increased by 2.22%. In addition, the price of fish sauce and dipping sauce increased by 0.32%; milk, butter, and cheese by 0.32%; sugar, bile by 0.26%; cakes, jams, and sweets by 0.12%; tea, coffee, and cocoa increased by 0.26% due to increase in raw material prices. On the other hand, pork prices decreased by 1.41% due to abundant supply (caused the overall CPI to decrease by 0.05 percentage points); poultry meat prices decreased by 0.21%; prices of edible fats and oils decreased by 0.26%.

[5] CPI after excluding fresh food, foodstuff, energy, and goods managed by the State including health services and education services.