People shop at Co-op Mart in HCM City. The consumer price index was forecast to increase slightly by 0.5-0.6 per cent against September. — VNA/VNS Photo Pham Hau

HA NOI (Biz Hub)— Consumer price index (CPI) this month will likely increase slightly by 0.5-0.6 per cent against September, according to the Domestic Market Regulation Department under the Ministry of Industry and Trade.

Besides cyclical factors such as season change, the ongoing storm season and prices of goods and services, CPI also faces pressure this month from the credit growth target and price hikes of clean water and school tuition, the department said.

Prices of some essential commodities such as rice, fresh meat and aquatic products and animal feed will stabilise this month thanks to abundant supply while prices of vegetables and urea will rise slightly.

Ongoing price stabil-isation programmes in big cities such as Ha Noi and HCM City would help keep prices from increasing, the department said.

Credit institutions expect this month's CPI to rise by 0.76 per cent from September, according to a survey conducted by the Monetary Forecast and Statistics Department under the State Bank of Viet Nam.

The institution also expected inflation to hit 7 per cent this year, lower than the 7.05 per cent expectation in the previous survey.

The department forecast that domestic prices would rise significantly in the last months of the year due to high demand on the occasion of the new year and a price hike in the world market. — VNS