CPI rose 0.48 per cent in July after base salary increases

The consumer price index (CPI) rose 0.48 per cent in July on rising domestic petrol prices, higher demand for electricity and higher health insurance premiums following a 30 per cent increase in base salary from the beginning of this month, data of the General Statistics Office (GSO) showed.

The consumer price index (CPI) rose 0.48 per cent in July on rising domestic petrol prices, higher demand for electricity and higher health insurance premiums following a 30 per cent increase in base salaries from the beginning of this month, data of the General Statistics Office (GSO) showed.

Compared to December 2023, CPI in July rose by 1.89 per cent. CPI rose by 4.12 per cent in January – July over the same period last year.

The rate is considered noteworthy in terms of the goal of keeping inflation at 4-4.5 per cent following the National Assembly’s socio-economic development plan for 2023.

According to GSO, 10 out of 11 categories of goods and services saw increases in prices in July, only telecommunications services were stable.

Notably, the category of other goods and services rose 3.77 per cent, mainly because of the increase by 28.45 per cent in health insurance premiums after the base salary was increased from VNĐ1.8 million to VNĐ2.34 million per month.

Transportation services were up 1.45 per cent, pushing up CPI by 0.14 percentage point as the price of diesel rose by 4.07 per cent and petrol prices by 3.55 per cent.

Prices of housing, electricity, water, fuel, building materials, restaurant and catering services, recreation and tourism, medicine and healthcare services, beverage and tobacco, household appliances, garment and footwear and education, all saw increases by 0.02 per cent to 0.5 per cent.

Core inflation rose 2.73 per cent over the same period last year, if food, electricity, healthcare services and petrol prices were excluded.

Gold price saw a drop of 0.12 per cent in July over the previous month, but an increase of 18.11 per cent over December 2023 and 29.29 per cent over July 2023. Gold prices rose 24.77 per cent on average in January – July.

According to the Domestic Market Department under the Ministry of Industry and Trade, close watch has been put on market developments since the base salary was increased to limit.

Support has been provided to enterprises to ensure adequate supply and smooth circulation and distribution of goods to stabilise the market.

The Price Management Department under the Ministry of Finance will raise solutions to ensure inflation within the target and price stabilisation in line with macroeconomic stability.

Prime Minister Phạm Minh Chính last week signed an official dispatch on solutions to accelerate growth, control inflation and stabilise the macro economy in the third quarter of 2024.