Shoppers at a supermarket in Hà Đông District, Hà Nội. - VNA/VNS Photo Trần Việt

HÀ NỘI - Việt Nam’s consumer price index (CPI) rose by 0.05 per cent in May compared to April, said the General Statistics Office (GSO) yesterday.

The office cited increased pork prices leading to a supply shortage following the African swine fever outbreak at the end of 2023 and higher electricity prices due to recent hot weather. Compared to December 2023, CPI in May 2024 has increased by 1.24 per cent, and 4.44 per cent compared to the same period last year.

On average, in the first five months of this year, the Southeast Asian economy’s CPI has increased by 4.03 per cent compared to the same period last year with core inflation increased by 2.78 per cent.

Among the 11 main consumer goods and services groups, seven saw price increases compared to the previous month three groups saw decreases, and one remained stable.

Contributing factors, according to the GSO, included an 8.7 per cent increase in education after some provinces and central cities raised tuition fees in the 2023-2024 school year, an overall CPI increase of 0.54 percentage points; 6.87 per cent increase in medicine and healthcare, an overall CPI to increase of 0.37 percentage points; 5.49 per cent increase in housing and construction materials, an overall CPI increase of 1.03 percentage points due to rising prices of cement, iron, steel, sand, and higher rents, 1.6 per cent increase in culture, entertainment, and tourism, an overall CPI increase of 0.07 percentage points.

The office highlighted factors that reduce CPI in the first five months of the year, including price decreases of 1.46 per cent in postal and telecommunications services compared to the same period last year due to discounts on older and newly introduced models of smartphones.

Domestic gold has largely followed global trends as average world gold price was US$2,352.56 per ounce, up 1.3 per cent from April 2024. Việt Nam’s gold price index in May 2024 increased by 3.81 per cent compared to the previous month; 21.47 per cent compared to December 2023; 32.18 per cent compared to the same period last year; and 22.95 per cent on average in the first five months of 2024. Increased geopolitical risks in the Middle East and strong demand by central banks and investors were the main contributing factors.

The US dollar continued a gaining trend with the USD index on the international market reaching 105.06 points, up 0.1 per cent from the previous month due to accelerated production and business activities in the US, with the composite PMI index for May 2024 reaching 54.4, the highest level since April 2022.

Domestically, demand for foreign currency for import activities by businesses has increased significantly, with the average exchange rate on the free market around 25,464 VNĐ/USD. The greenback increased by 1.15 per cent in May compared to the previous month; 4.21 per cent compared to December 2023; 7.85 per cent compared to the same period last year; and 5.24 per cent on average in the first five months of 2024, increased by 5.24 per cent.

Core inflation in May 2024 increased by 0.15 per cent compared to the previous month; 2.68 per cent compared to the same period last year; 2.78 per cent on average, in the first five months of 2024, core inflation increased by 2.78 per cent compared to the same period in 2023, lower than the average overall CPI, mainly because the prices of food, fuel, education, and healthcare, which were factors that increased CPI, were excluded from the calculation. VNS