Six-month core inflation drops to lowest level since 2011: GSO

The Consumer Price Index (CPI) rose 1.47 percent year-on-year in the first half of 2021, the lowest since 2016, according to the General Statistics Office (GSO).

The index in June edged up 0.19 percent month-on-month, 1.62 percent against last December and 2.41 percent year-on-year, GSO General Director Nguyen Thi Huong told a press conference in Hanoi on June 29.

The rises are largely due to increases in prices of materials, fuels, electricity and fresh water, Huong explained.

She said core inflation in June inched up 0.07 percent compared to May and 1.14 percent the same period last year. The figure in the first half of the year rose by 0.87 percent year-on-year. Both June’s and six-month figures are the lowest since 2011.

Based on these figures, it is completely feasible to keep the inflation below 4 percent this year, Huong stressed.

The average fuel price in H1 surged 17.01 percent year-on-year, pushing the CPI up 0.61 percentage point, while rice prices grew 6.97 percent, contributing to a rise of 0.18 percentage point in the CPI, she said.

Prices of construction materials, such as cement, iron, steel, and sand, jumped 5.03 percent, adding 0.1 percentage point to the CPI.

In contrast, H1 prices of food declined 0.39 percent the same period last year, contributing to a 0.08-percentage-point slide of the six-month CPI. It is because of drops in prices of staples, for example, pork (down 4.15 percent), and chicken (down 2.04 percent).

A decrease of 3.06 percent in electricity price in H1 also made the CPI to edge down 0.1 percentage point.

The COVID-19 resurgence has been curbing travel during the first six months of the year, causing rail tickets and airfares to fall 3.41 percent and 17.05 percent, respectively.

The average gold price spurred 18.06 percent year-on-year between January and June./.