According to the General Statistics Office's thematic report on consumer prices published on December 29, the average CPI in the fourth quarter of 2023 increased by 3.54 percent compared to the fourth quarter of 2022. Generally, CPI increased by 3.25 percent in 2023 compared to 2022.
Some localities have increased the price of medical services according to Circular No. 22/2023/TT-BYT while tuition fees surged according to Decree No. 81/2021/ND-CP, and electricity prices hiked due to the Vietnam Electricity’s adjustment of the average retail electricity prices.
Moreover, prices of domestic rice continue to increase along with export rice prices. The market prices of all essential commodities have gone up resulting in the 0.12 percent hike in the consumer price index (CPI) in December 2023 in comparison to the previous month. Compared to the same period last year, December's CPI increased by 3.58 percent.
According to the national statistics agency, the world commodity market in 2023 had many fluctuations; plus, it was influenced by economic, political and social factors.
Domestically, the Government and the Prime Minister have proactively, drastically and closely directed ministries and agencies to implement many solutions to remove difficulties, promote growth, maintain macroeconomic stability, and control of inflation to ensure major balances of the economy. Thanks to all efforts of ministries and agencies, there have been no dramatic fluctuations in the market for essential goods while the supply is guaranteed, and commodity prices increase and decrease alternately.
Overall, compared to the same period last year, the growth rate of the consumer price index in the first months of the year tends to decrease, and from July it tends to increase again. In 2023, CPI in January increased the highest at 4.89 percent, then gradually decreased until June, the increase was only 2 percent, and by December it increased by 3.58 percent.
Core inflation in December increased by 0.17 percent over the previous month, up 2.98 percent over the same period last year. On average in 2023, core inflation increased by 4.16 percent compared to 2022, higher than the general average CPI increase of 3.25 percent. Economists pointed out that core inflation is higher than the general average CPI increase because the average domestic gasoline price in 2023 decreased by 11.02 percent compared to the previous year, gas price decreased by 6.94 percent, but it is not included in the group of goods of core inflation calculation.
Also not included in the groups of goods and services calculated by CPI, domestic gold prices fluctuate in parallel with that of the world. Specifically, as of December 25, the average world gold price was at US$2,040 an ounce, up 2.93 percent compared to November 2023 due to the U.S. Federal Reserve's decision to maintain interest rates unchanged at 5.25 - 5.5 percent. Moreover, three interest rate cuts are expected in 2024 leading to a soar of gold prices. In addition, the stock market has seen hiccups, and the need for gold reserves of central banks and the Asian region in the year-end are also the reasons that affected gold prices in the world.
Domestically, the gold price index in December 2023 increased by 3.98 percent compared to the previous month and 13.13 percent over the same period last year. In 2023, the yellow precious metal had an average increaseof 4.16 percent.
