HCM city April cpi +3.16%, highest in multi-months

Ho Chi Minh City’s consumer price index (CPI) in April is estimated to have risen by 3.16% from March, the highest level in many months.

Ho Chi Minh City’s consumer price index (CPI) in April is estimated to have risen by 3.16% from March, the highest level in many months, driven by a jump in prices of transport, housing due to higher fuel and electricity prices, said the municipal Statistic Department.

The index was up 13.99% from a year earlier and 8.2% from the beginning of the year, the department said.

The biggest price increase was seen in transport, soaring 5.77% contributed by 10.96% rise in fuel oil, 8.07% in train ticket. The surge was attributed to over 30% price hikes of fuels in two tranches in the past 2 months.

All other sectors saw price hike in the month. Rising over 1% on month were: restaurant and food service +4.56%, housing and building materials +4.12%, household furnishes +1.49%, recreation & cultures +1.39%, garments and wearing +1.24%.

Other sectors saw prices rise under 1% including chemicals and health care services +0.45%, other goods and services + 0.44%, tele-communication +0.16%, education +0.05%.

Notably, Foodstuff continued a dramatic price hike in the month +6.19%, almost all components soared: fresh cattle +13.23%; live-stock +8.24%; processed meat +6.34%, eggs +7.32%, fresh seafoods +5.92%, vegetables +5.89%.

Prices of food rose 1.23% mostly contributed by higher processed food, rice prices rose only 0.61% due to easing global rice prices.

In September, gold prices fell by 1.47% while those of dollar dropped 2.48% on month. This is a rare move due to the government’s effort to stabilize forex market and intention to manage bullion trade.

High April CPI is rare, usually CPI peaked in February due to seasonal factor including traditional Tet holiday. But this year, CPI continued to rise sharply in March and April due to 9.3% dong devaluation, higher electricity, fuel prices.

Vietnam still keeps inflation target at 7% this year while analysts forecast ranges from 9.5% to 14%.

HCM City Monthly CPI in 2011

CPI on-month	1/2011	2/2011	3/2011	4/2011
Ho Chi Minh City (%)	1.01	1.61	2.2	3.16

Tags: Vietnam CPI, Vietnam CPI 2011, Vietnam economic, Vietnam economy