Hiking prices of food, catering services, and public transport services over the Lunar New Year holiday, as well as the end of Electricity of Vietnam's power-price assistance programme were the main reasons behind the record increase of the consumer price index (CPI).
|The CPI increased by a whopping 1.52 per cent on-month in February |
According to the latest data published by the General Statistics Office of Vietnam, the CPI in February increased by 1.52 per cent on-month, the highest rate over the last eight years. The authority stated that the growth figure stemmed from the Electricity of Vietnam ending its power-price assistance programme and also the rising price of food, catering, and transport services during the Lunar New Year holiday.
Meanwhile, last month, the CPI only rose by 0.7 per cent on-year – the lowest rate since 2016. Thus, over the first two months of 2021, the index declined by an average 0.14 per cent on-year while inflation rose by 0.64 per cent on-year.
In February, the price index of about 10 goods and service categories rose while one category remained stable. Specifically, housing and building materials grew by 4 per cent, resulting in a 0.75 per cent rise in the CPI while power prices increased by 20.06 per cent (contributing 0.66 per cent). In addition, house maintenance, gas, and petroleum prices went up by 1.31, 6.74, and 4.35 per cent, respectively.
The catering service has also increased by 1.61 per cent due to the high consumption demand during the Lunar New Year holiday. Of this, foodstuff and food products increased by 1.77 and 1.82 per cent, respectively, adding 0.39 per cent to the CPI growth.
Transport services rose by 1.55 per cent, fuelled by a 3.28 per cent increase in gasoline prices.
Otherwise, categories like garment and footwear, tourism, and healthcare services saw the lowest increases by 0.25, 0.2, and 0.01 per cent, respectively.