Consumer price index in October, 2020 increased by 0.09% over the previous month and over December last year – both of them were the lowest level in the period of 2016-2020[1], mainly due to the price of education service prices were adjusted to increase in line with the roadmap to approach market prices and influence of storms and floods in the central provinces. The average consumer price index of 10 months of 2020 increased by 3.71% over the same period last year.
In the increase of 0.09% of the consumer price index (CPI) in October 2020 compared to the previous month, there were 6/11 groups of goods and services having increased price indexes, of which the education group had the highest increase of 1.35% (educational services grew by 1.52%, making the general CPI increase by 0.08%) because 9 provinces and cities in the month implemented the roadmap to increase tuition fee for the new school year 2020-2021. Housing and construction materials increased by 0.29%, mainly due to the price of gas rose by 1.77% (making the overall CPI increase by 0.03%), prices of materials, maintenance and housing repair services grew by 0.15% and 0.2%, respectively. Beverage and cigarette increased by 0.08%[2]; garments, hats and shoes grew by 0.06% due to the need to buy clothes and shoes when the weather changed; medicine and medical service group grew by 0.01%; other goods and services increased by 0.09%. Price index of four groups decreased: Culture, entertainment and tourism group decreased by 0.18%; food and catering services decreased by 0.13% (food rose by 0.16%[3]; foodstuff declined by 0.28%[4]); transport group declined by 0.08% due to the impact of adjustments of petrol and oil price on September 26th, 2020, the petroleum price index decreased by 0.18% (making the overall CPI dropped by 0.01%), besides, train fares decreased by 0.95% at the end of summer and price of car declined by 0.17% due to many attractive car discount packages offered by many car dealers to raise consumer demand; postal services and telecommunications decreased by 0.03%. Household appliances remained unchanged.
CPI of October 2020 increased by 0.09% compared to December 2019 and by 2.47% over the same period last year; average CPI of 10 months in 2020 increased by 3.71% compared to the same period in 2019.
Core inflation in October 2020 increased by 0.07% over the previous month and increased by 1.88% over the same period last year. Average core inflation of 10 months of 2020 grew by 2.52% compared to the same period of 2019.
Domestic gold prices fluctuated according to the world gold prices. The world gold price fluctuated erratically due to many mixed information flows before the US presidential election and the Covid-19 epidemic in the world was still complicated. Average world gold price as of October 25th, 2020 decreased by 1.05% compared to September 2020. Domestically, gold price index in October 2020 decreased by 1.1% over the previous month; an increase of 30.91% compared to December 2019; increased by 29.63% over the same period last year.
The US presidential election and the uncertainty about the approval of the second stimulus package of the US Congress were factors that increase the price of the US dollar. 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 October 2020 increased by 0.07% over the previous month; went up by 0.19% compared to December 2019 and dropped by 0.13% over the same period of 2019.
[1]CPI growth rate in October over the previous month of period of 2016-2020: 0.83%; 0.41%; 0.33%; 0.59%; 0.09% respectively. CPI growth rate in October over December last year in period of 2016-2020: 4%; 2.25%; 3.54%; 2.79%; 0.09% respectively.
[2] Of which: prices of alcohol of all kinds increased by 0.12%; tobacco increased by 0.19%; carbonated soft drinks rose 0.13%.
[3] Due to the increase of 0.21% in rice prices to serve domestic consumption and to prepare for year-end exports.
[4] Mainly due to the price of pork decreased by 2.84%; price of processed products from pork decreased (price of roast meat, spring rolls decreased by 1.03%, price of animal organs decreased by 1.57%; pork fat reduced by 4.5%); price of poultry meat declined by 0.5%. However, due to the influence of storms and floods in the central provinces, the price of fresh vegetables increased by 1.86% (making the general CPI increase by 0.04%); the price of fresh seafood increased 0.11%.