Nation sees medium CPI increase in February

illustration photo

The CPI surged by 2.09 per cent over January and 12.31 per cent year-on-year, matching economic experts’ expectations.

Ten out of 11 commodity groups recorded increases ranging from 0.3 to 3.65 per cent, of which food and restaurant services saw the sharpest hike with 3.65 per cent, followed by beverages and tobacco with a 2.14 per cent increase.

The group of commodities experiencing increases above one percent included garments and textiles, hats and footwear; cultural, entertainment and tourist services; and transport.

Other commodities with increases below one percent were education services, housing and construction materials, household utensils, medicine and medical services.

However, post and telecommunication services prices continued to drop by 0.01 per cent.

Nguyen Duc Thang, Head of the General Statistic Office’s Pricing Department, said the hike in the February’s CPI was attributed to the rise in the price of goods and services on the occasion of the Lunar New Year (Tet) holiday.

The increasing demand for travel during Tet holiday also pushed the price of public transport services up by 6.27 per cent, he added.

According to economic experts, with the decision to increase electricity prices from March 1, prices of a wide range of commodities and services are expected to climb.

In particular, the latest adjustment of the interbank USD/VND rate, that increased 9.3 per cent from Feb. 11, may affect imported materials and essential commodities.

The price of petrol is also under great pressure from the rising world price and a higher forex rate.

Meanwhile, the rise in world food prices will create unstable prices for domestic food, with March CPI expected to see a strong increase.