Healthcare costs push CPI up

Saturday, Oct 29, 2016 09:11

The CPI fluctuation in 10 months.
HA NOI (Biz Hub) — Rising healthcare costs led the charge as the Consumer Price Index (CPI) rose by 0.83 per cent in October.

The General Statistic Office of Viet Nam (GSO) has also reported a 0.07 per cent increase in core inflation over last month.

It said that as of October 28, 2016, the national CPI had increased by 4.09 per cent compared to the same period last year.

Out of the 11 main groups of goods and services, the prices of nine increased this month. Pharmaceuticals and healthcare services registered the highest increase of 10.07 per cent, followed by transportation (2.02 per cent), education (0.61 per cent), housing and construction materials (0.31 per cent) and food and drinks (0.17 per cent).

The other two groups, culture, entertainment and travel, and telecommunications, decreased respectively by 0.02 and 0.12 per cent.

Do Thi Ngoc, Deputy Director of the GSO's Price Statistics Department, said the main reason for CPI's increase in October was the adjustment in healthcare costs, including an increase in salary for medical personnel in 15 regions.

Price adjustments on October 5 and October 20 also contributed to an increase of 4.14 per cent in petrol group over September.

Since early this month, LPG (cooking gas) prices have increased by VND15,000 (US$0.67) per 12-kilo cylinder, as a $47.5 per tonne increase in imported gas prices pushed domestic gas prices up by 4.21 per cent over last month.

The food and beverages group went up in October based on high demand during the wedding season as well as a strong increase in vegetable prices because of reduced supply from flood-hit central provinces.

Increased school fees in several centrally-administered provinces and cities also contributed to the rise in CPI, the GSO said.

Factors that helped control CPI in October include decreased demand for building materials, a drop in world steel prices, and a post peak season dip in tourism.

The GSO report said that general inflation posted a higher increase than core inflation this month. General inflation rose by 2.27 per cent, while core inflation rose by 1.82 per cent compared to the same period last year.

It said the relatively small gap between these two figures reflected a consistent monetary policy and a stable economy.

The GSO also predicted a rise in November CPI due to further increases in healthcare service fees in other areas, as also increases in gas and food prices. — VNS

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