Consumer price index, gold and USD price indexes in February of 2023

Petrol and domestic gas prices increase according to world fuel prices; rental housing prices continued to increase due to high demand after the Lunar New Year, which was the main reason for the consumer price index (CPI) in February 2023 to increase by 0.45% compared to the previous month. Compared to December 2022, February, CPI increased by 0.97% and over the same period last year by 4.31%.

On average, in the first two months of 2023, CPI increased by 4.6% over the same period in 2022; core inflation increased by 5.08%.

 In the increase of 0.45% of CPI in February 2023 compared to the previous month, there were 05 groups of goods and services with an increase in price index, and 06 groups of goods with a decrease in price index.

(1) Five groups of goods and services with increasing price index include:

– The transport group had the highest increase, increasing by 2.11% mainly due to the increase in gasoline and oil prices by 5.66% (making the general CPI increase by 0.2 percentage points) due to the influence of gasoline price adjustments, oil on February 13, 2023 and February 21, 2023. Besides, the price of public transport services increased by 2.58%, of which the price of passenger transport services by rail increased by 32.92%; passenger transport services by air increased by 6.63% due to high travel demand in the month of Tet.

– Housing and construction materials increased by 1.81% due to 14.56% increase in gas price, from February 1st, 2023, domestic gas price was adjusted to increase by 63,000 VND/12 kg bottle after world gas prices increased by 192.5 USD/ton (from 597.5 USD/ton to 790 USD/ton); electricity price for daily life increased by 1.12%[1]; price of housing maintenance materials increased by 0.99%; house rent increased by 0.28%. In the opposite direction, kerosene price decreased by 1%; the price of domestic water decreased by 2.06%[2].

– The group of other goods and services increased by 0.12%, focusing on the price of jewelry, which increased by 0.78% according to the domestic gold price; bags, suitcases, wallets increased by 0.2%; wedding supplies and services increased by 0.47%. In the opposite direction, hair cutting and shampooing services decreased by 0.17% compared to the previous month.

– Equipment and household appliances group increased by 0.09%. In which, the price of washing machine increased by 0.46%; egg beaters, multi-function mixers increased by 0.35%; microwave oven, oven, induction cooker by 0.35%; rice cookers increased by 0.33%; electric irons increased by 0.26%. In the opposite direction, the price of air conditioners decreased by 0.31%; printers, projectors, scanners down 0.26%; blankets, curtains, pillows down 0.24%; aluminum and stainless steel items decreased by 0.15%.

– Medicines and medical services increased by 0.02%.

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

– Education group decreased by 0.57% (making the general CPI decrease by 0.04 percentage points), of which the group of educational services decreased by 0.66%. The main reason is that on December 20, 2022, the Government issued Resolution No. 165/NQ-CP, which required localities to keep the tuition fee rate stable for the 2022-2023 school year like the 2021-2022 school year in order to continue to support the people, some localities[3] have adjusted to reduce the tuition fee after being collected according to Decree No. 81/2021/ND-CP dated August 27, 2021 of the Government.

– Food and foodsuff services decreased by 0.17% (making CPI decrease by 0.05 percentage points), of which: Food increased by 0.26%[4]; foodstuff decreased by 0.49%[5]; eating out of the family increased by 0.45%[6].

– Beverage and cigarettes decreased by 0.12% due to the decrease in consumption laws after the Lunar New Year, so alcohol prices decreased by 0.22% compared to the previous month; smoking decreased by 0.12%. Particularly, the prices of juices and energy drinks increased by 0.47% and 0.34% respectively due to high consumption demand when people go to spring and New Year festivals.

– Postal services and telecommunications decreased by 0.1%.

– The group of garments, hats and shoes decreased by 0.08% because the price of towels, scarves, gloves and socks decreased by 0.12%; ready-to-wear decreased by 0.13% as consumer demand dropped after the Lunar New Year. In the opposite direction, the price of all kinds of fabrics increased by 0.07%; garment services increased by 0.08% and footwear services increased by 0.22%.

– Culture, entertainment and tourism group decreased by 0.02%.

Core inflation [7] in February 2023 increased by 0.25% over the previous month, up by 4.96% over the same period last year. In the first two months of 2023, average core inflation increased by 5.08% compared to the same period in 2022, higher than the general average CPI (up by 4.6%) mainly due to gasoline prices from July The decrease from 2022 to December 2022 is a limiting factor in the overall CPI growth rate of a group of goods excluded from the basic inflation calculation list.

The domestic gold price fluctuates inversely with the world gold price. World gold prices fell as the US dollar appreciated after the US Federal Reserve (FED) raised interest rates to curb inflation. Rising USD interest rates encourage capital flows not to invest in gold. As of February 25, 2023, the average world gold price was at 1,858.35 USD per ounce, down 0.98% compared to January 2023. Domestically, the gold price index in February 2023 increased by 0.92% compared to the previous month; increased by 2.62% over the same period last year; on average, in the first two months of 2023, the domestic gold price index increased by 3.1%.

The US dollar in February 2023 on the world market increased after the FED raised the reference interest rate by 0.25 percentage points, bringing the interest rate to 4.5%-4.7% and CPI in January 2023 in the US was announced. As of February 25, 2023, the US dollar index on the international market reached 103.41 points, up 0.49% over the previous month. Domestically, the average US dollar price on the free market fluctuated around 23,740 VND/USD. The US dollar price index in February 2023 increased by 0.2% compared to the previous month due to the guaranteed supply and increased by 3.67% over the same period last year. On average, in the first two months of 2023, the domestic US dollar price index increased by 3.42%.

[1] The domestic electricity price index in February 2023 is calculated based on the revenue and consumption of electricity from the date of January 1-31, 2023, thus reflecting movements one month later than other commodities

[2] The domestic water price index in February 2023 is calculated based on the revenue and consumption of electricity from the date January 1-31, 2023, thus reflecting movements one month later than other commodities.

[3] The rate of decrease in price index of educational services group in February compared to the previous month of Thai Binh decreased by 20.93%; Nam Dinh decreased by 13.25%.

[4] Rice group index increased by 0.1% (Delicious rice increased by 0.03%; ordinary rice increased by 0.13%; sticky rice decreased by 0.03%). Besides, the price of flour and other grains in February increased by 0.94% compared to the previous month, the price of processed food increased by 0.54% (noodles, noodles, pho, instant porridge increased by 0.75%; vermicelli by 0.46%; cornmeal by 0.77%; bread by 0.36%).

[5] February pork prices fell 1.62%; poultry meat price decreased by 0.39%; the price of eggs of all kinds decreased by 1.95%; The supply of vegetables was abundant, vegetable prices decreased by 2.81%. Besides discounted items, the price of fresh seafood increased by 0.37% over the previous month due to the increase in input material prices and transportation costs; vegetable oil by 0.42%; fish sauce, dipping sauce increased by 0.73%; fruits of all kinds increased by 1.24%; condiments increased by 0.14%; milk, butter, cheese increased by 0.3%.

[6] The demand for spring festivals at the beginning of the year increased sharply, of which the price of meals outside the family increased by 0.42%; drinking outside the family increased by 0.48%; fast food take away increased 0.65%.

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