Declines in food prices are a major cause of a CPI drop in May (Photo: VNA) Hanoi (VNA) – Consumer price index (CPI) in May dropped by 0.53percent from the previous month mostly due to a sharp fall in food prices, theGeneral Statistics Office (GSO) said on May 29.
This month’s CPI rose 0.37 percent from lastDecember and 3.19 percent from the same period of 2016. The five-month figurehiked 4.47 percent from a year earlier.
Seven of the 11 groups of main commodities andservices saw slight price increases, namely culture, entertainment and tourism(up 0.13 percent); household appliances and goods (0.1 percent); beverage andcigarette (0.08 percent); garment, footwear and hat (0.05 percent); andmedicine and health care services (0.04 percent); education (0.02 percent); andother goods and services (0.15 percent).
Price declines were recorded in the fourremaining groups. Food and catering services prices sank 1.43 percent, followedby transport services (down 0.34 percent), postal and telecommunicationservices (0.05 percent), and housing and construction materials (0.02 percent).
Do Thi Ngoc, Deputy Director of the GSO’s PriceStatistics Department, said in the group of food and catering services, grainfood prices decreased 0.06 percent in May because northern provinces have beenharvesting the winter-spring rice while rice export became stagnant.
Prices of foodstuff, which makes up the biggestproportion in the food and catering services group, declined 2.27 percent,mainly in fresh meat. Notably, pork prices plummeted 9.94 percent from Aprildue to a surge in supply, unchanged demand, and Chinese traders’ weak purchase.
She added petrol prices were cut on May 5 and20, leading to a 0.71-percent fall in fuel prices compared to the previousmonth.
Meanwhile, there are factors hampering a furtherdrop in CPI, including the hot weather, which fanned electricity consumptionthat in turn boosted power prices up by 0.98 percent. The hot weather alsospurred the demand for cooling equipment and summer apparel and footwear.
Housing maintenance materials grew 0.93 percentas construction sand prices soared after sand mining was restricted nationwide,she noted.
In May, domestic gold prices fluctuated in linewith global gold prices, dropping 0.1 percent from April to around 36 millionVND (1,853 USD) per tael. The price of US dollar also declined slightly to22,600 – 22,700 VND per USD.
The GSO said the core inflation, which is theCPI excluding grain food, fresh foodstuff, energy and the State-managed goodsof health care and educational services, in May increased 0.08 percent month onmonth and 1.33 percent year on year. The five-month core inflation rose by 1.56percent from a year earlier, lower than the planned inflation of 1.6 – 1.8percent, indicating a stable monetary policy.
CPI in June is likely to be the same or fallslightly from May since pork and poultry prices will still follow the downwardtrend.
Meanwhile, stronger tourism demand in summerwill augment eating and hospitality services prices. Price increases are alsopredicted for electricity, water and petrol, according to the GSO.-VNA
VNA
