CPI unchanged in April

First time since 2008 CPI unchanged month-on-month and largely due to tumbling pork prices.

The consumer price index (CPI) in April was almost unchanged from March and increased just 4.3 per cent year-on-year, according to the latest figures from the General Statistics Office (GSO).

The GSO said that this is the first time since 2008 that the CPI has not increased month-on-month and is in the context of pork prices falling sharply.

The CPI in the first four months of this year, meanwhile, rose 4.8 per cent, which is quite high compared to the same period of 2015, when it was 0.8 per cent, and the 1.41 per cent in 2016. It is, however, lower than the average growth in the first quarter of this year, of 4.96 per cent.

Seven of the eleven goods in the CPI basket increased. Medicine and healthcare services saw the highest increase, of 8.05 per cent.

Culture, entertainment, travel and household appliances increased 0.1 per cent, beverages and cigarettes 0.06 per cent, garments, hats and footwear 0.02 per cent, and education 0.01 per cent. Other goods and services increased 0.08 per cent.

Most remaining goods and services declined in price, such as transport, by 1.38 per cent, restaurants and catering services 0.66 per cent, housing and construction materials 0.24 per cent, and post and telecommunications 0.03 per cent.

Vietnam’s livestock industry is facing a crisis in pork prices, dragging down prices of all pork products since the end of 2016. In response, the Minister of Agriculture and Rural Development and the Minister of Industry and Trade jointly called for solutions to assist pork and livestock farmers.

According to the Ministry of Agriculture and Rural Development, Vietnamese pork prices have reached a record low and are also the lowest in the world. He blamed the situation on oversupply in the local market.

Meanwhile, processing technology remains weak, restricting preservation. Pork products are mainly sold domestically and only a small proportion is exported.

The minister called for improvements in pork processing technology to focus on exports. It is also important to reduce livestock counts from the current 4.2 million sows to 3 million by 2020.

by Ngoc Chi / VET