May CPI shows slight reduction on low purchasing power

The average index for the first five months was up 4.39% from that of the same period last year. In the period, basic inflation rose by 2.88% year-on-year.

According to the GSO, in May, four out of the 11 commodity groups experienced price reductions: transport (2.21%); culture, entertainment and tourism (0.02%); post and telecommunication services (0.02%); and garment, headwear and footwear (0.01%).

Increases were seen in prices of restaurant and catering service (0.34%); beverage and tobacco (0.25%); housing and building material (0.25%); other commodities and services (0.07%); household appliances (0.05%); and medicine and medical services (0.04%).

Meanwhile, prices in the education group remained unchanged.

In the month, CPI in urban areas was down 0.17%, while that in rural areas was up 0.11%.

Do Thi Ngoc, head of the GSO’s Price Statistics Department, attributed the falling CPI to decreases in prices of petrol, electricity, rice, and housing rent.

In May, gold prices moved up in tandem with global gold prices, surging 2.41% from April to hover around VND4.71 million (US$203.7) per tael.

The VND/USD exchange rate reduced 0.41%, with one USD exchanged for VND23,219.