January of 2021 is the month before Tan Suu Lunar New Year, the people’s shopping demand increased. The price of food, foodstuff, outdoor eating and drinking increased; the price of domestic petroleum, gas increased according to the price of world fuel, these factors made the consumer price index in January 2021 up 0.06% compared to December 2020 and down 0.97% over January 2020.
In the increase of 0.06% of the consumer price index (CPI) in January 2021 compared to December 2020, there were 9/11 groups of goods and services having increased price indexes, of which: Transport group had the highest increase of 2.29% 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% (making the overall CPI grew by 0.22%), besides, the demand for shopping and repair vehicle at the end of the year increased, leading to the increase in prices of some vehicles and vehicle maintenance services[1]. Food and catering services increased by 0.64%, mainly due to consumer demand to prepare for the upcoming Lunar New Year increased (food rose by 0.83%[2]; foodstuff went up by 0.81[3]; outdoor eating and drinking grew 0.15%). 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. Education group grew by 0.33% because Da Nang city recovered educational fees from January 2021 after implementing Resolution No. 309/NQ-HĐND on tuition fee support dated on July 8th, 2020 by the People’s Council of Da Nang city, 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%[4]; 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%. Price index of two groups decreased: Housing and construction materials decreased by 2.31%, mainly due to provinces and centrally-run cities implement the support package of Vietnam Electricity (EVN) to reduce electricity prices, electricity charges for customers affected by Covid-19 phase 2, causing the electricity’s price for living reduced by 16.88% (making the overall CPI decreased by 0.56%), on the other hand, the price of gas rose by 7.67%, the price of materials, the housing maintenance grew by 1.94% and the price of oil rose by 8.33%. The postal services and telecommunications group reduced by 0.1%. Compared to the same period in 2020, CPI of January 2021 decreased by 0.97%.
Core inflation in January 2021 increased by 0.27% compared to December 2020 and increased by 0.49% over the same period last year.
Domestic gold prices increased according to the world gold prices due to the weakening of US dollar in the context of the complicated Covid-19 epidemic in the US. Average world gold price as of January 24th, 2021 increased by 0.3% compared to December 2020. Domestically, gold price index in January 2021 increased by 2.17% over the previous month and by 28.19% over the same period last year.
The US dollar on the world market fell after the United States transferred power between two presidencies when the Covid-19 epidemic continued to be unpredictable. 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 January 2021 decreased by 0.16% compared to December 2020 and dropped by 0.27% over the same period of 2020.
[1] Prices of new cars increased by 0.1%, motorcycles increased by 0.15%, prices of spare parts increased by 0.06%, prices of vehicle maintenance services increased by 0.07%.
[2] Mainly due to the increase of 1.04% in price of rice (making the overall CPI increase by 0.03%), of which: sticky rice increased by 0.69%, delicious non-glutinous rice increased by 0.81%, ordinary rice increased by 1.11%.
[3] The price of pork increased by 4.74%; prices of processed products from pork increased (prices of roast meat, spring rolls increased by 1.91%, animal organs increased by 2.96%, pork fat increased by 5.36%); prices of fresh poultry meat increased by 0.97%; fresh seafood prices rose 0.94%; prices of confectionery and candy increased by 0.37%.
[4] The price of non-alcoholic drinks increased by 0.13%; alcohol increased by 0.45%; smoking increased by 0.23%.