Many prices for consumer goods increased, "pulling" the July CPI up 0.45%.

DNHN - This rise in the consumer price index - CPI in July 2023 was primarily attributable to a sharp increase in the prices of key groups of goods and services.

The consumer price index (CPI) in Vietnam increased by 0.45% in July 2023, compared to the previous month, due to the exciting tourist season. This has increased the average total consumption value by 1.13 percent compared to December 2022 and 2.06 percent compared to the same period last year. In the first seven months of 2023, the CPI increased by 3.12% on average compared to the same period in 2022.

This remarkable increase in the CPI was primarily attributable to the sharp price increases of key groups of goods and services. Among them, the group of other goods and services saw the highest growth, at 2.84 percent. In this group, environmental sanitation services increased by 2.86 %, personal services by 0.37 %, personal property by 0.14 %, and hospitality services by 0.12 %.

July 2023 will see an increase of 0.63% in food and catering services, which is not outside the uptrend. In this group, food prices rose 0.31 percent, while food prices rose 0.79 percent. During this period, there has been a significant increase in demand for dining away from home, which is closely related to the tourism boom.

Simultaneously, housing and construction materials increased by 0.51% due to the prolonged hot weather, which significantly increased the demand for electricity and water.

In addition to the CPI, core inflation increased by 0.36 percent month-over-month and 4.11 percent year-over-year in July 2023. In the first seven months of 2023, core inflation increased by 4.65%, significantly outpacing the rise in the average CPI.

According to experts, the increase in CPI and core inflation during the month of July 2023 was primarily attributable to price adjustments in food, food, and catering services, driven by high demand during the tourist season. However, restraints such as the 19.32% decline in domestic petrol prices over the same period last year and the 11.44% decline in petrol prices limited the CPI growth rate, despite these two commodity groups being not included in core inflation.

The world gold price reached $1,951.89 per ounce on July 25, 2023, a decrease of 0.62 percent from June 2023. Domestically, the price of gold in July 2023 decreased by 0.03% compared to the previous month but still increased by 3.27 % compared to December 2022 and 3.37 % compared to July 2022. In seven months of 2023, the gold price has increased by an average of 1.06%.

Simultaneously, the price of the US dollar has fluctuated due to the impact of inflation in the United States and positive data from the US labor market. The US dollar index on the international market has decreased by 1.86 percent compared to the previous month as of 25 July 2023. The average US dollar price on the domestic free market is approximately 23,787 VND/USD. In July 2023, the US dollar price index increased by 0.53% over the previous month, decreased by 1.71% from December 2022 to July 2023, and increased by 1.04% from July 2022 to July 2023. In the first seven months of 2023, the price of the US dollar increased by an average of 2.39 percent.

In July 2023, CPI and inflation in Vietnam increased significantly due to the expansion of tourism and the impact of numerous economic factors. Gold and U.S. dollar price fluctuations are also important factors to monitor shortly.

PV (t/h)