Compared to December 2022, the CPI in July 2023 increased by 1.13% and compared to the same period last year increased by 2.06%. On average, in the first 7 months of 2023, the consumer price index (CPI) increased by 3.12% over the same period last year; core inflation increased by 4.65%.

In the 0.45% increase in CPI in July 2023, there were 10 groups of goods and services with increased price indexes and 1 group with decreased price indexes. Specifically, the 10 groups of goods and services with increased price indexes include: Other goods and services increased by 2.84%, housing and construction materials increased by 0.51%; transportation increased by 0.11%,... only the post and telecommunications group had a price decrease of 0.12%.

Increased electricity and food prices caused the CPI in July to increase by 0.45%. Illustrative photo.

The General Statistics Office pointed out the factors that increased the CPI in the first 7 months of 2023; that is: The average price index of the education group in the first 7 months of 2023 increased by 7.61% over the same period last year because some localities increased tuition fees again from September 2022 after exempting or reducing tuition fees in the 2021-2022 school year.

The housing and construction materials group increased by 6.58% over the same period last year, due to the increase in prices of cement, iron, steel, and sand following the increase in input material prices and high housing rental prices. The other goods and services group increased by 3.71% over the same period last year, mainly due to the increase in health insurance services according to the basic salary from July 2023.

The price index of the culture, entertainment and tourism group increased by 3.45% due to the Covid-19 epidemic being controlled, increasing people's demand for entertainment and tourism.

Along with that, the airfare index increased by 67.87%; train fares increased by 31.34%; and bus fares increased by 9.83% due to the increased demand for travel during holidays, Tet, and summer.

In addition, food prices increased by 3.34%, mainly due to increased consumer demand during holidays and Tet, causing the CPI to increase by 0.71 percentage points. Household electricity prices increased by 3.79% due to increased electricity demand and EVN's decision to increase electricity prices by 3%, effective from May 4, 2023. Domestic rice prices increased by 2.4% following export rice prices...

However, in addition to the factors that increase the CPI, there are also factors that reduce the CPI in the first 7 months of 2023 such as: on average in the first 7 months of 2023, kerosene prices decreased by 12.41% compared to the same period last year; domestic gasoline prices decreased by 19.32% following fluctuations in world prices. Domestic gas prices decreased by 11.44% following world prices. The price index of the postal and telecommunications group decreased by 0.45% due to the decrease in prices of old-generation phones.

According to the General Statistics Office, in July, domestic gold prices fluctuated in the same direction as world gold prices. As of July 25, 2023, the average world gold price was at 1,951.89 USD/ounce, down 0.62% compared to June 2023 due to market expectations that the US Federal Reserve (Fed) would raise the base interest rate by 0.25 percentage points, putting pressure on gold prices. Domestically, the gold price index in July 2023 decreased by 0.03% compared to the previous month; increased by 3.27% compared to December 2022; increased by 3.39% compared to the same period last year; the average for the first 7 months of 2023 increased by 1.06%.

The US dollar index increased by 0.53%. In the world, the US dollar price fluctuated up and down when inflation in the US cooled down and was affected by positive information from the US labor market. As of July 25, 2023, the US dollar index in the international market reached 101.07 points, down 1.86% compared to the previous month.

Domestically, the average US dollar price in the free market is around 23,787 VND/USD. The US dollar price index in July 2023 increased by 0.53% compared to the previous month; decreased by 1.71% compared to December 2022; increased by 1.04% compared to the same period last year; the average for the first 7 months of 2023 increased by 2.39%.

According to the General Statistics Office, core inflation in July 2023 increased by 0.36% compared to the previous month, up 4.11% compared to the same period last year. On average, in the first 7 months of 2023, core inflation increased by 4.65% compared to the same period in 2022, higher than the average CPI increase (up 3.12%).

The main reason is that the average domestic gasoline price in the first 7 months of 2023 decreased by 19.32% compared to the same period last year, the gas price decreased by 11.44%, which is a factor that restrains the CPI growth rate but belongs to the group of goods excluded from the list of basic inflation calculations.

News and photos: VNA

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