The price of food and foodstuff decreased due to plentiful supplies; the decrease in the price of electricity and water for a living according to consumption demand were the main reasons causing the consumer price index (CPI) in April 2021 to decrease by 0.04% from the previous month, increased by 1.27% compared to December 2020 and increased by 2.7% over the same period last year. On average, in the first 4 months of 2021, CPI increased by 0.89% over the same period last year, the lowest increase since 2016; core inflation in 4 months increased by 0.74%.
In the decrease of 0.04% of the consumer price index (CPI) in April 2021 compared to March 2021, there were 4 groups of goods and services that have decreased price indexes, 6 groups of goods and services have increased price indexes and 1 group of goods and services kept prices stable. Housing and construction materials had the highest decrease of 0.43% (making the general CPI decreased by 0.08 percentage points), of which: The price of electricity and water for a living in April decreased by 0.73% and 1.57% respectively; price of gas decreased by 4.86% and kerosene rose by 0.06%. Postal services and telecommunications went down by 0.2%, mainly due to businesses promoting discount promotion programs for old models of mobile phones. Food and catering services declined by 0.13% (making overall CPI down 0.04 percentage points) due to abundant supply, of which: Food fell by 0.01%[1]; foodstuff fell by 0.25%[2]; outdoor eating and drinking increased 0.14%. Culture, entertainment and tourism group decreased by 0.11%, mainly due to good weather, the blooming season, causing the price of flowers and ornamental plants to decreased by 7.32%. The price index of goods and services groups increased: Transport group increased by 0.87% (making overall CPI increased by 0.08 percentage points) due to the impact of adjustments to increase and decrease in petrol and oil prices on March 27th, 2021, April 12nd, 2021 and April 27th, 2021, made petroleum price index increased by 2.19%, diesel oil increased by 0.25%; besides, the price of public transport services increased by 0.84%. Beverage and cigarettes went up by 0.14%, mainly due to the increasing demand for mineral water and carbonated water as the weather turned hot[3]. Household appliances rose by 0.11% due to the increase in prices of products used in the summer such as refrigerators, air conditioners and electric fans. Education group went up by 0.03%. Medicine and medical service group grew by 0.01%, mainly due to changing seasons of weather, the proliferation of viruses causing diseases, people susceptible to respiratory diseases, so the demand for drugs to strengthen the immune system increased. Other goods and services increased by 0.07%. Particularly garments, hats and shoes still unchanged.
CPI of April 2021 increased by 1.27% compared to December 2020 and by 2.70% over the same period last year; the average CPI of the first 4 months in 2021 increased by 0.89% compared to the same period in 2020.
Core inflation in April 2021 increased by 0.07% over the previous month and increased by 0.95% over the same period last year. The average core inflation of the first 4 months of 2021 grew by 0.74% compared to the same period of 2020.
The domestic gold price fluctuated in the opposite direction of the world gold price. The average world gold price as of April 24th, 2021 increased by 2.08% compared to March 2021 due to the decline in US bond yields, making gold more attractive. Besides, the large buying force from China and India, the two largest gold-consuming countries in the world, have significantly contributed to the gold price recovery. Domestically, the gold price index in April 2021 decreased by 1.9% over the previous month; fell by 2.51% over December 2020, and increased by 13.84% over the same period last year.
The US dollar on the world market rose amid tight interest rates in the US and improved prospects for the prevention of Covid-19 vaccination in Europe. 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 April 2021 increased by 0.29% over the previous month; went up by 0.18% over December 2020 and decreased by 1.35% over the same period last year.
[1] The price of rice fell 0.1% due to plentiful supplies, many shops reduced old rice’s price to prepare warehouses for new rice purchases. In addition, domestic rice’s price decreased in line with export rice’s price due to price competition.
[2] The price of pork decreased by 1.75% (making the general CPI decreased by 0.06 percentage points) as African swine fever is controlled, pork supplies are guaranteed; prices of processed products from pork decreased (prices of roast meat, spring rolls decreased by 0.46%, other processed meat decreased by 0.02%, pork fats decreased by 3.43%); prices of chicken and poultry eggs decreased by 0.22% and 1.2%, respectively; prices of fresh seafood decreased by 0.57%. Particularly, the price of fresh, dried and processed vegetables increased by 1.48%; the price of fresh and processed fruit increased by 0.13%.
[3] The price of mineral water increased by 0.34%; carbonated soft drinks increased by 0.36%; juice increased 0.1%; bottled energy drinks increased by 0.38%.