Sharp pig and poultry price falls send June CPI down

Shoppers are seen at a veggies section of a Co.opmart supermarket in HCMC. The sharp pig and poultry price falls have sent Vietnam’s consumer price index (CPI) down 0.17% in June versus the previous month - PHOTO: THANH HOA

HCMC – Vietnam’s consumer price index (CPI) in June is down 0.17% versus the previous month, helped by the sharp pig and poultry price falls, according to a report released on June 29 by the General Statistics Office.

Pig and poultry prices have dipped 4.71% and 0.87% respectively in June, leading to a 0.85% slide in food prices and a 0.19% slip in the consumer price index compared to May.

Food prices are down 0.51%, backed by high rice output in the winter spring crop in northern provinces. In general, prices of food and beverages are down 0.59% against last month.

Two other sectors that have posted a slight decrease in price are transport services, down 0.71% due to a fall of 1.47% in fuel prices since June 20, and posts and telecommunications with a 0.01% fall. The fuel price cuts have contributed 0.06% to the CPI fall.

In all, the June CPI is down 0.17% against last month but up 0.2% compared to December 2016 and up 2.54% compared to the same period last year. The average CPI of the first six months of 2017 is up 4.15% compared to the same period last year.

The CPI rise in the first half results from the upward adjustments of healthcare service fees in 27 cities and provinces. Healthcare service prices in January-June have shot up 47.93% year-on-year.

Some localities have revised up school fees, resulting in an 11.56% price rise in the education sector in the first six months.

Global prices of essential commodities like fuel, iron and steel have rebounded in the first half, leading to prices of imported and exported goods picking up.

However, the sharp pig and poultry price falls triggered by China’s slackened demand for pork have tempered the first half CPI rise. Food prices have edged 1.74% lower, contributing a 0.39% decrease of the CPI.

In June core inflation, a measure of inflation what exclude certain items and services with volatile price movements like food, energy, healthcare and education, has grown 0.1% against May and 1.29% year-on-year.

According to the General Statistics Office, trade and service activities in the first half have improved with service and retail revenues estimated at VND1,924 billion (about US$84.7 million), up 10.1% year-on-year.