According to the socio-economic situation report for July and the first 7 months of 2024 of the General Statistics Office ( Ministry of Planning and Investment ), in July, the consumer price index (CPI) increased by 0.48% over the previous month, increased by 1.89% over December 2023 and increased by 4.36% over the same period last year.

The main reason for the CPI increase in July was explained by the General Statistics Office as the domestic gasoline price increased following world prices, the demand for electricity increased, and the health insurance premium was adjusted according to the new basic salary.

On average, in the first 7 months of 2024, CPI increased by 4.12% over the same period last year.

Also according to the report from the General Statistics Office, in the 0.48% increase in CPI in July compared to the previous month, there were 10 groups of goods and services with increased price indexes; only the post and telecommunications group had stable prices.

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Domestic gasoline prices increasing following world prices is one of the main reasons for the CPI increase in July. Photo: Nguyen Hue

Of which, the group of other goods and services increased by 3.77%, mainly due to the price of health insurance increasing by 28.45% when the basic salary was adjusted from 1.8 million VND/month to 2.34 million VND/month. In addition, the price of elderly care services increased by 2.5% compared to the previous month; repair of watches and jewelry increased by 0.47%; body care products increased by 0.24%; environmental sanitation services increased by 0.3%.

The transportation group increased by 1.45%, mainly due to a 4.07% increase in diesel prices; domestic gasoline prices increased by 3.55% due to the impact of price adjustments during the month.

Air passenger transport prices increased by 20.44%; rail by 4.4%; road passenger transport by 0.04%; combined passenger transport by 0.01% due to increased travel demand during the summer. Auto spare parts prices increased by 0.15%; bicycle tires and tubes increased by 0.31%; motorcycle tires and tubes increased by 0.09%. Vehicle maintenance service prices increased by 0.24%; car and motorbike rental fees increased by 0.15%; driving license fees increased by 0.17% due to high demand.

The housing, electricity, water, fuel and construction materials group increased by 0.5%, mainly due to the reasons of the 1.39% increase in electricity prices and the 0.22% increase in water prices.

The food and catering services group increased by 0.26% (making the overall CPI increase by 0.09 points). Of which, food prices decreased by 0.03%; foodstuffs increased by 0.31% (making the overall CPI increase by 0.07 points); eating out increased by 0.25%.

The culture, entertainment and tourism group increased by 0.14%. Of which, the price of package tourism services increased by 0.23%; guest houses and hotels increased by 0.43% because in July, students have summer vacation, so the demand for travel of agencies, businesses and families increases.

The group of medicines and medical services increased by 0.13%. Of which, the price of inpatient medical examination and treatment increased by 0.19%, and the price of outpatient medical examination and treatment services increased by 0.08%.

The beverage and tobacco group increased by 0.11% due to increased consumer demand in hot weather. Specifically: the price of carbonated soft drinks increased by 0.22%; fruit juice increased by 0.16%; beer of all kinds and energy drinks in bottles, cans, and boxes increased by 0.08%; alcohol of all kinds increased slightly by 0.02%. The price of cigarettes increased by 0.2% compared to the previous month.

Household equipment and appliances group increased 0.07% due to increased labor costs.

The garment, hat and footwear group increased by 0.03% due to increased transportation and labor costs. Of which, the price of footwear services increased by 0.37%; garment services increased by 0.21%; fabrics of all kinds increased by 0.19%; hats increased by 0.16%; footwear increased by 0.07%.

The education group increased by 0.02%. Of which, the price of paper products increased by 0.4%, pens of all kinds increased by 0.15%, and textbooks increased by 0.05%.

The postal and telecommunications group maintained stable prices as businesses and establishments continued to implement promotional programs to stimulate shopping. Of which, smart phones and tablets decreased by 0.39% compared to the previous month, while phone repair prices increased by 0.19%.

Meanwhile, core inflation in July increased by 0.36% over the previous month and by 2.61% over the same period last year.

On average, in the first 7 months of 2024, core inflation increased by 2.73% over the same period in 2023, lower than the average CPI (up 4.12%), mainly due to the prices of food, foodstuffs, electricity, education services, medical services and gasoline, which are factors affecting the increase in CPI but are excluded from the list of core inflation calculations.

Pork prices increase CPI in May Pork prices increase due to supply shortage and increased electricity costs due to hot weather, which are the main reasons for the consumer price index (CPI) in May increasing by 0.05% compared to the previous month.