VINACHEM

Vietnam’s annual inflation, as measured by the consumer price index (CPI), eased to 4.73% in August from the 4.94% rate in July, the General Statistics Office (GSO) has reported.

Compared with the previous month, consumer prices increased by 0.22%, official data released by the GSO on August 24 showed.

Inflation slowed in August as a result of decreases in transport costs, building materials, utility bills and telecommunications as well as slight increases in other commodities in the basket used to calculate the CPI.

Building materials and utility bills as a single category posted a one-month drop of 0.31% while transport costs also fell by 0.06%, mainly driven by recent petrol price cuts.

Last week, the retail price of RON92 petrol, the most common type of fuel in Vietnam, was cut by VND600 to VND24,210 per litre, the third cut within a month.

In August, food costs and restaurant services went up by 0.45% from the previous month, boosted by respective increases of 0.45%, 0.54% and 0.16% in the prices of food, foodstuff and eating out.

The GSO said the reason for such a large increase in this category was stronger demand for food for the Hungry Ghost Festival, rising meat production costs and rice exporters rushing to buy grain to meet orders.

Garments and education costs rose by 0.32% and 0.22% respectively due to higher demand for clothes, footwear and stationery products ahead of a new academic year.

In August, the prices of gold and the US dollar, which were not included in the CPI basket, dropped by 0.34% and 0.26% respectively.