Vietnam's CPI Hovers 12.63 per cent in 2007, Ten-Year Record High

6:07:57 PM | 12/25/2007

Vietnam’s consumer price index (CPI) is estimated to hover 12.63 per cent this year, added by the December rise of 2.91 per cent, the General Statistics Office (GSO) reported December 25.

This is the CPI highest rise over the past decade. The index rose only 6.6 per cent in 2006, 8.4 per cent in 2005 and 9.5 per cent in 2004.

This year’s 12.63 per cent CPI rise is much higher than the initial estimation set by the National Assembly, at below GDP growth, which is estimated at 8.5 per cent this year.

The high inflation rate is attributed to the fast increase in prices of food group, which account for 42.8 per cent of the commodity basket to calculate CPI, and housing group.

Food and foodstuff prices registered the highest rise at 18.92 per cent against last December, followed by housing and construction material prices at 17.72 per cent on year.

Despite the fall of 3.55 per cent in telecom services prices, the transport and communication group still saw the CPI hike of 7.27 per cent.

Culture, sports and entertainment group had the slowest rise at 1.69 per cent this year, followed by education group at 1.97 per cent.

Followings are details of each group:

	Index in Dec 2007 compared with ( per cent)
	Base year 2005	Dec 2006	Nov 2007
Consumer price index	121.83	112.63	102.91
Food and foodstuff	130.29	118.92	104.24
Of which: -Food	133.41	115.40	102.98
-Foodstuff	129.50	121.16	104.69
Beverage and cigarette	115.26	106.78	101.33
Garment, footwear, hat	113.74	106.70	101.16
Housing and construction materials	127.10	117.12	103.28
Household appliances and goods	113.19	105.15	100.46
Medical products and health care	113.11	107.05	100.61
Means of transport & communication	115.79	107.27	104.38
Of which: Postal services & Telecoms	92.34	96.45	99.23
Education	107.94	101.97	100.08
Culture, sport and entertainment	105.90	101.69	100.29
Other consumer goods and services	118.49	109.02	101.61

The prices of gold surged 27.35 per cent from last December, while the prices of U.S dollar fell 0.03 per cent against the Vietnamese dong.

The CPI jumped up 13.29 per cent in urban areas and 11.99 per cent in rural areas over the past year.

Finance Minister Vu Van Ninh said in an interview recently Vietnam targets to curb consumer price index below the two-digit level and below the economic growth rate in 2008. (GSO Dec 2007)

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