Core inflation in August 2022 increased by 1.64% over the same period in 2021

DNHN - In August 2022, core inflation climbed by 0.4% over the previous month and by 3.06% over the same period last year. Core inflation grew by 1.64% on average in the first eight months of 2022 compared to the same period in 2021.

According to the General Statistics Office, the consumer price index (CPI) grew by 0.005% in August 2022 over the previous month due to a rise in the price of basic consumer goods and services following the price of input materials. Educational expenses in certain areas climbed again in the new school year 2022-2023, however domestic gasoline prices have been steadily decreasing since July 2022. The consumer price index climbed by 3.6% in August 2022 compared to December 2021 and by 2.89% over the same month previous year.

There were 9 groups of goods and services with a rise in the price index and 2 groups of products with a reduction in the price index in the 0.005% increase in CPI in August 2022 compared to the previous month.

The price index for nine categories of goods and services has risen, including:

- Education grew the most at 1.46%, with the education service price index increasing by 1.51% compared to the previous month, since certain provinces and centrally-run cities raised tuition prices for the school year in August 2022. new for preschools, intermediate schools, colleges, and universities in 2022-2023 Furthermore, the preparation for the new school year should enhance the demand for books and school supplies. Textbooks grew in price by 1.05%, pens climbed by 1.38%, and notebooks and writing paper increased by 1.02% compared to the previous month.

- Food and catering services increased by 1.05% (increasing the overall CPI by 0.35 percentage points), with food increasing by 0.19% (the overall CPI impact increased by 0.01 percentage points); food increasing by 1.33% (impact increased by 0.28 percentage points), and eating out with family increasing by 0.73%. (the overall CPI impact increased by 0.06 percentage points).

- The category of culture, entertainment, and tourism climbed by 0.43%, with the following groups receiving the most attention: Due to increasing tourism demand in the summer month, prices for domestic tourism services climbed by 0.94%, outbound tourism grew by 0.09%, and hotels and guest houses increased by 0.25%. At the same time, musical instruments grew by 0.51% over the previous month, sports services increased by 1.14%, and sports equipment increased by 0.42%.

- The beverage and tobacco category climbed by 0.27% due to increasing consumer demand and higher raw material prices for beverage manufacturing.

-  Housing and building materials increased by 0.26% due to a 1.44% increase in electricity prices in August compared to the previous month; domestic water prices increased by 0.39% due to increased demand; housing repair service prices increased by 0.54%, and housing maintenance materials prices increased by 0.49%. In the opposite direction, the domestic gas price was adjusted down by 18,500 VND/12 kg cylinder on August 1, 2022, after the world gas price decreased by 60 USD/ton (from the level of 60 USD/ton) to 725 USD/ton to 665 USD/ton); kerosene price decreased by 9.97% over the previous month due to the impact of price adjustments on August 1, 2022, August 11, 2022, and August 22, 2022.

- The group of appliances and household appliances increased by 0.21%, with the main focus on items such as gas stove prices increased by 0.75%; tissue paper prices increased by 0.47%; metal utensils prices increased by 0.32%; soaps and detergents prices increased by 0.33%; beds, cabinets, tables, and chairs prices increased by 0.22%... In the other direction, blender and juicer prices fell by 0.68% from the previous month; refrigerator prices fell by 0.1%, and washing machine prices fell by 0.02%.

- Other goods and services increased by 0.2%, with a 0.53% increase in body care products such as lotion, lipstick, and perfume; a 0.34% increase in razors, toothbrushes, and sunglasses; a 0.28% increase in hospitality services; a 0.15% increase in personal services; and a 0.1% increase in environmental cleaning services.

- The group of clothing, headwear and footwear grew by 0.18% as the cost of manufacturing materials, labour costs, and the increased need for procurement to prepare for the new school year increased.

- Medical products and services grew by 0.09%.

A falling price index exists for two types of commodities and services:

- The post and telecoms category fell by 0.01%.

- Transportation declined by 5.51% (causing the overall CPI to fall by 0.53 percentage points) owing to the impact of domestic fuel price revisions on August 1, 2022, August 11, 2022, and August 22, 2022, causing gasoline prices to fall by 14.52% and diesel oil prices to fall by 12.9%. In the opposite direction, the cost of public transportation climbed by 0.88%, while the cost of new motorcycles, bicycles, and vehicles increased by 0.33%, 0.27%, and 0.11%, respectively, due to a lack of components and spare parts.

In August 2022, core inflation climbed by 0.4% over the previous month and by 3.06% over the same period last year. Core inflation climbed by 1.64% on average in the first eight months of 2022 compared to the same period in 2021, which was lower than the total average CPI (up by 2.58%), which includes variations in consumer prices mostly due to food and fuel costs.

P.V