Inflation rate in HCMC, HN remains very low

Update: January, 23/2016 - 11:00
HA NOI/HCM CITY  (VNS) — The consumer price index (CPI) in the country's two biggest cities of Ha Noi and HCM City in January is estimated to move in opposite direction with a 0.12 per cent rise in Ha Noi but a 0.03 per cent reduction in HCM City against the previous month.

The Ha Noi Statistics Office reported yesterday that the city's CPI increased this month due to the high demand for the Tet festival next month.

The office said the CPI for the capital city this month rose by 0.12 per cent against the previous month and 1.2 per cent year-on-year even after twice having reduced petrol prices.

Cutting the fuel prices forced the transport group to reduce the prices of goods by 2.1 per cent in January, the office said.

Meanwhile, the increase in CPI of Ha Noi this month was due to higher prices from the remaining 11 goods items used to calculate the index.

The highest surge in price was from education at a rate at 3.74 per cent because the municipal People's Committee increased the school fees.

The price of food surged 0.27 per cent in comparison with the previous month as the local market registered a high demand for goods before the Tet holidays. In addition, restaurants saw an increase in the demand for food during weddings and meetings at the end of the lunar year. These included pork, chicken and seafood.

The prices for the group of housing, electricity, fuel and building material surged by 0.08 per cent month-on-month as the demand for repairs to houses rose before the Tet festival, along with the use of electricity during the cool season.

CPI in HCM City

Meanwhile, CPI this month in HCM City saw a slight reduction of 0.03 per cent against the previous month but had increased by 0.26 per cent year-on-year, according to the HCM City Statistics Office.

The office said the strong supply of goods and the development of price stabilisation programmes had contributed to price stability and the reduction in January's CPI, even though this is the month before the Tet festival, when demand for goods and services relevant to the Tet holidays is high.

The price fell by a record 3.36 per cent for the transport item while the reduction for the medicine and health care services items was 0.13 per cent and 0.01 per cent, respectively. — VNS