Vietnam economy sees CPI rise by 0.1% in January

Vietnam economy finds its CPI increase by 0.1% in January

Due to the upcoming Lunar New Year holiday, consumer prices in Vietnam economy are increasing as shopping demand rises. As a result, according to the General Statistics Office (GSO), consumer price index, or CPI, grew by 0.1% last month over December and 2.46% over January of last year. Several things currently in demand by Vietnamese people include clothing, food products, and beverages. 

Product categories experiencing price changes

In January, nine categories saw higher prices while two categories saw declining prices. The categories that saw higher prices include restaurant and catering services, garment, tourism services, building and housing materials, headwear and footwear, and beverage items. The two categories experiencing a drop in prices are transportation services and telecommunication services. 

The 6.68% decline in fuel prices last month from December also lowered the CPI of Vietnam economy by 0.29%. According to the GSO, the government’s usage of the petrol price stabilization fund had caused petrol prices to drop. This fund was used to stabilize the country’s petrol price due to higher environmental protection tax on fuel.

Other than higher prices, last month’s core inflation also increased by 1.83% over January 2018 and rose more than the general inflation. This depicts a higher demand for money, although the monetary market of Vietnam economy remained the same. 

Retail revenue increased by 12.2% last month

With higher consumer prices and consumer demand in Vietnam economy, revenue from the retail trade and services sector incurred a 12.2% increase year-on-year and a 4.4% rise month-on-month. Additionally, the retail value of consumer goods in Vietnam also grew 5.2% over December and 13.1% over January 2018. As for retail sales of services in Vietnam economy, it saw an increase of 1.8% month-on-month and 7.4% year-on-year.

In terms of localities, Hanoi saw its retail sales surge the most at 15.1%, followed by Hai Phong at 14.5%, Bac Ninh province at 14%, Da Nang at 13.1%, and Ho Chi Minh City at 13%. In terms of categories, textile and garments (13.4%) and food products (13.1%) in Vietnam economy had the highest growth in retail value of goods last month. 

Philippine economy is projected to expand up to 7% due to strong government spending, lower inflation rate and more. WB forecasts Philippines GDP at 6.4% in 2019.
Singapore economy finds its manufacturing sector contract by 0.4 points to 49.9 points (PMI index), the first contraction after 2.5 years of manufacturing growth.
Vietnam economy is expected to exceed Singapore’s in 10 years time. In fact, Vietnam grew by 7.1% last year, the fastest growth rate among ASEAN countries.
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