Vietnam inflation climbs to 7-year peak in January
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The consumer price index (CPI) in January jumped 6.43 percent year-on-year, the biggest increase seen in 7 years.
It also rose 1.23 percent over last December, with the high increase this year attributed to the surge in eating out, shopping and travel demands of people during Tet or the Lunar New Year, Vietnam’s biggest national holiday.
The General Statistics Office (GSO) said that in the CPI basket, 10 major groups of consumer goods and services saw their price indices rise in January, led by food and catering services with a 2.29 percent increase.
It was followed by housing and construction materials costs, up 1.47 percent; transportation, 0.69 percent; beverages and tobacco 0.65 percent; and garments and footwear, 0.33 percent. Meanwhile, post and telecommunications decreased slightly by 0.03 percent.
The government has targeted keeping CPI below 4 percent in 2020 this year, the same as the last three years, but GSO head Nguyen Bich Lam has warned that this may be difficult to achieve, given impacts of the African swine fever epidemic, which wiped out 6 million pigs last year, forecast to remain a major challenge.
Questions & Answers
Q.What is the primary reason given for the significant increase in the consumer price index in January?
What is the primary reason given for the significant increase in the consumer price index in January?
The high increase in January is attributed to a surge in demand for eating out, shopping, and travel by people during Tet, which is Vietnam's biggest national holiday.
Q.Which specific categories within the CPI basket experienced the largest price increases?
Which specific categories within the CPI basket experienced the largest price increases?
Food and catering services led the increases with a 2.29 percent rise. Housing and construction materials followed, up 1.47 percent, then transportation at 0.69 percent.
Q.What target has the government set for the consumer price index in 2020, and what challenges might prevent reaching it?
What target has the government set for the consumer price index in 2020, and what challenges might prevent reaching it?
The government aims to keep CPI below 4 percent in 2020. However, the GSO head warned this may be difficult due to the ongoing impact of the African swine fever epidemic.