CPI in January hits record high in last 7 years

This is the highest January CPI growth recorded over the last seven years.

Compared to the previous month, an increase was seen in the prices of ten out of 11 main groups of goods and services, led by the food and catering services (2.29%). It was followed by housing and construction materials (1.47%); goods and other services (0.92%); transport (0.69%); drinking and tobacco (0.65%); garment and textiles, headwear and footwear (0.33%); household equipment and products (0.27%); and culture, entertainment and travel (0.25%).

The only sector that underwent a price fall was post and telecommunications (0.03%).

Do Thi Ngoc, head of the GSO’s Price Statistics Department, explained that the CPI in January saw a sharp climb due to the higher demand for food and drinks and textiles for the Lunar New Year (Tet) festival.

The petrol and oil prices in January increased by 1.29% on average compared to December 2019. Meanwhile, the price of gas in the month rose 14.08% compared to the previous month.

At the same time, domestic gold price went up 4.37% over the previous month; while the US dollar remained stable, at around 23,222 VND/USD.

GSO said the core inflation in January, which is CPI excluding grain food, fresh foods, energy and the State-managed medical and educational services, increased by 0.76% from December 2019, and 3.25% compared to the same period last year.

The general inflation in January grew at a faster pace than the core inflation, reflecting that price changes were mainly driven by higher prices of food, services, and petrol.