The fuel prices are down thanks to eased pressure inflationary

Updated: Oct 19

Inflationary pressure eased significantly in August on Government efforts to bring down petrol prices although prices of other goods and services kept increasing, according to the General Statistics Office.


Source: Vietnam Insider


The inflation pressure eased significantly in August on Government efforts to bring down petrol prices although prices of other goods and services kept increasing, according to the General Statistics Office.


GSO’s update on Monday showed that the consumer price index (CPI) increased slightly by 0.005 percent in August over the previous month – the lowest increasing rate of August during the past five years, compared to the highest rate of the five-year period recorded in August 2018 at 0.45 percent.


The CPI in August rose 3.6 percent against December 2021 and 2.89 percent against the same month last year.


On average, the CPI rose 2.58 percent from January – August, demonstrating that the inflation pressure was easing significantly on Government efforts at cutting petrol prices from the beginning of August.


The eight-month CPI in the past five years was highest in 2018 at 3.52 percent.


Cutting fuel prices on August 1, 11, and 22 altogether brought down petrol prices by 14.52 percent and diesel oil prices by 12.9 percent compared to the previous month, making the price index of the transport services fall by 5.51 percent.


GSO said that the drop in transportation services prices contributed to pushing down CPI in August by 0.53 percentage points.


However, from January-August, domestic fuel prices increased by 45.33 percent against the same period last year after 14 hikes and eight cuts, pushing up the overall CPI by 1.63 percentage points.


Among 11 goods and services components in the CPI basket, nine increased in August over the previous month, except for transport and gold.


Restaurant and catering services increased by 1.05 percent and food by 1.33 percent, in pork prices rose by 4.95 percent on rising animal feed prices.


Education rose by 1.46 percent as some provinces and cities under the central management increased school fees for 2022-23.


Other components increased by between 0.18 percent to 0.73 percent.


Core inflation, which excluded prices of food, energy, and goods and services subject to State management, in August rose by 0.4 percent over July and 3.06 percent over a year ago.


In January-August, core inflation increased by 1.64 percent, lower than the overall CPI of 2.58 percent, demonstrating that the price increase was mainly from food and fuel.


Amid global uncertainties, Prime Minister Phạm Minh Chính has stressed that stabilizing the macro-economy and controlling inflation remains the top priority.


At the end of July, the PM sent a document to ask management agencies to increase the control of prices of goods and services after strong drops in fuel prices.


Government efforts in reducing fuel prices gave room to control inflation below 4 percent this year as set by the National Assembly.


The Ministry of Finance forecasts the CPI this year at 3.37-3.87 percent while the GSO forecast is 3.4 – 3.7 percent.


Source: VNS