This latest decline in the CPI can largely be attributed to a plentiful supply of goods coupled with a low consumption demand for electricity and water.
CPI in April climbed by 2.7% against the same period from last year, while the average CPI during the initial four months of the year saw an increase of 0.89%, the lowest rise since 2016, with core inflation increasing by 0.74%.
Among the 11 main groups of consumer goods and services throughout April, a CPI decline was recorded in four categories, including restaurant and food services (down 0.13%), housing and construction materials (down 0.43%), post and telecommunications (down 0.2%), and cultural, entertainment, and tourism services (down 0.11%).
Elsewhere, the surge in the CPI could be seen in six groups, including transportation (up 0.87%), beverage and tobacco (up 0.14%), and household appliances (up 0.11%), while prices remained stable in other groups, such as garment and footwear.
According to the GSO, there are a number of other factors behind the CPI increase during four-month period, including rising rice prices and the increasing consumption demand for sticky rice and other forms of delicious non-glutinous rice during the Lunar New Year festival, known locally as Tet.
These moves have served to make rice prices during the reviewed period climb by 7.76% against the same period from last year. Experts also attributed the CPI hike to rises in the prices of food, oil and gas, and educational services.
Along with reasons for the CPI increase, experts said the slight CPI decline was also affected by the Government’s deployment of support packages for residents and businesses negatively impacted by the novel coronavirus (COVID-19) pandemic.
In addition, railways, airlines, and travel firms have also offered attractive discounts to stimulate tourism demand, causing travelling ticket prices to decline.
April witnessed local gold prices move in tandem with global gold prices, while the US dollar in the global market rose amid a tightening control of interest rates in the United States, along with improved prospects relating to the implementation of the COVID-19 vaccination programme in Europe.
