The report on socio-economic situation of the General Statistics Office published on April 29 showed that the consumer price index (CPI) in April 2023 decreased by 0.34% compared to the previous month.

Compared to December 2022, CPI increased by 0.39% and over the same period last year increased by 2.81%. On average, in the first 4 months of 2023, CPI increased by 3.84% over the same period last year.

In the 0.34% decrease of CPI in April 2023 compared to the previous month, there were 7 groups of goods and services with a decrease in price index, 4 groups of goods with an increase in price index.

Seven groups of goods and services with a decrease in price index, in which the education group had the strongest decrease with 1.3%, causing the overall CPI to decrease by 0.08 percentage points.

The main reason according to the analysis of the General Statistics Office is that on December 20, 2022, the Government issued Resolution No. 165/NQ-CP. In which, it is required that localities keep the tuition fee stable for the 2022-2023 school year at the same level for 2021-2022 school year to continue to support the people. Several localities have adjusted to reduce the tuition fees collected according to Decree No. 81/2021/ND-CP dated August 27, 2021 of the Government.

Housing and construction materials group decreased by 0.83% mainly because gas price decreased by 12.36% because from April 1, 2023, domestic gas price was adjusted down by VND 62,000/12 kg bottle after the world gas price decreased by USD 180/ton (from USD 730/ton to USD 550/ton); electricity price for daily life decreased by 0.98%; the price of domestic water decreased by 0.77% ; kerosene price decreased by 3.82% due to the impact of price adjustments on April 3, 2023, April 11, 2023 and April 21, 2023. In the opposite direction, house rent prices increased by 0.65%; housing maintenance materials prices increased by 0.22%.

The group of culture, entertainment and tourism decreased by 0.45%, of which the package tour service price decreased by 1.95%; Guest houses, hotels decreased by 1.38% because several travel companies reduced prices to stimulate demand. Favorable weather, blossoming flower season causes the price of fresh flowers to drop sharply, prices of flowers and ornamental plants decreased by 1.89%.

Food and food service groups decreased by 0.38% (making the overall CPI decrease by 0.13 percentage points). The post and telecommunications group fell 0.14% due to a drop in smartphone accessory prices.

Also according to the General Statistics Office, core inflation in April 2023 increased by 0.13% over the previous month, by 4.56% over the same period last year. On average, in the first four months of 2023, core inflation increased by 4.9% over the same period in 2022, higher than the overall average CPI (increased 3.84%).

Kylie Nguyen