September CPI records highest rise in decade

The CPI for  education saw the highest increase of 12.02%.

The country’s Consumer Price Index (CPI) in September went up by 1.31% over the previous month, the highest level for September in any year since 2000.

According to the General Statistics Office, the September CPI rose 8.92% over September 2009, increasing between 0.34 - 12.02% in 10 out of 11 groups of commodities.

The most significant increase was seen in educational products and services (12.02%), followed by housing and construction materials (1.08%). Meanwhile, transport increased by 0.91%, restaurants and related services, by 0.79%.

Commodities and other services saw a 0.57% increase, while entertainment and tourism services rose by 0.48% and beverages and tobacco by 0.44 percent.

The prices of medicines and medical services rose by 0.35%.

Slight increases were seen in the prices of garments, textiles, headwear and footwear (0.34%), and household utensils and appliances (0.34%).

However, the price of post and telecoms continued to fall by 0.07%.

Experts said the sharp increase in the September CPI was due to many factors, particularly the increased prices of educational products at the beginning of the 2010-2011 academic year.

In addition, the prices of many materials and essential commodities on world markets saw big increases, and the VND/US$ exchange rate was adjusted as the dollar strengthened.

The price of gas in September rose by nearly 6% or VND 14,000 per 12kg canister over August. In mid-September, the price of steel in the southern region was up by VND 300,000 per tonne after it had increased five times in August.

The CPI of the two economic hubs, Hanoi and Ho Chi Minh City, increased by nearly 1% against August, despite measures to stabilise eight essential goods, and exerted a dramatic impact on the country’s CPI.

In September, the prices of gold and US dollars on the black market saw sharp increases. Gold prices went up 3.58% from August, and 34.35% against September 2009.

Meanwhile, the US dollar rose 1.61% in value against August and 7.35% against September 2009.

However, experts have warned that the goal of maintaining inflation at 8% is not easy as the country will continue to face complicated challenges, including the instability of the world economy, and epidemics and natural disasters. The CPI also regularly increases in the fourth quarter of every year.

Ministries, sectors and localities are urged to closely control the prices of goods and services with support from the Government, and obey price registration and declaration instructions.

Experts also warned that the fourth quarter is the time to pay for imports of commodities and production materials, and it is necessary to have flexible measures on the exchange and banking interest rates to ease difficulties for enterprises to ensure the balance between demand and supply, and effectively curb price hikes. (VNA)

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