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CPI exceeds 8% target with one month to go

Update: November, 25/2010 - 10:05

Local people buy vegetables at Hang Be Market in Ha Noi. — VNA/VNS Photo Tran Viet

Local people buy vegetables at Hang Be Market in Ha Noi. — VNA/VNS Photo Tran Viet

HA NOI — The national average consumer price index in 11 months has exceeded the annual forecast with a year-on-year increase of 8.96 per cent, the General Statistics Office (GSO) has announced.

"At the beginning of this year, the Government targeted that the CPI for the whole year would be 8 per cent. The target is now exceeded," said GOS price department head Nguyen Duc Thang yesterday.

In November alone, Viet Nam's CPI rose 1.86 per cent over the previous month. This figure increased by 11.09 per cent over November 2009, and 9.58 per cent over December 2009, the statistics office said.

Of the 11 community groups, only the postal services and telecommunication sector saw a slight decrease of 0.03 per cent in prices. The other 10 community groups saw month-on-month increases of between 0.23 per cent and 3.45 per cent.

The high price of food, foodstuffs and restaurant service was considered to be the main cause of a high CPI rising 3.45 per cent in November, the office said.

Experts attributed the price increase to natural calamities and floods in the central region.

Thang said due to bad weather, transportation was strongly affected and supplies of pork, beef and seafood were limited and failed to meet the consumer demand.

The high price of export rice contributed to the increase in food and foodstuff prices, surging by US$5-10 per tonne in November, pushing prices paid for rice in the Hong (Red) River and Mekong deltas up by VND500,000-VND1 million ($25-$50) per tonne.

Demand for food and foodstuff to aid people in the central region was also cited as a reason for the increase.

Housing and construction materials increased by 1.74 per cent in November; other goods and service 0.99 per cent; beverage and cigarettes 0.94 per cent; garments, footwear 0.9 per cent; household appliances and goods 0.74 per cent; medicine and healthcare 0.59 per cent; traffic 0.29 per cent and education 0.23 per cent.

November also saw a strong increase in the price of gold and the value of the US dollar on the black market. The gold price increased by 8.67 per cent over October and 36.24 per cent over same month last year. The US dollar saw a month-on-month rise of 3 per cent and a year-on-year increase of 10.03 per cent.

The increasing CPI in November in the two main cities occurred despite attempts to stabilise prices. The CPI in Ha Noi was 6.63 per cent this month while HCM City's stood at 1.73 per cent.

Analysts predicted the CPI would continue to increase as agriculture and aquaculture production failed to recover to meet domestic demand.

It would be difficult to avoid double digit inflation this year, they said. — VNS

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