VietNamNet Bridge - For the first time since mid 2007 when a hyperinflation busted out in Vietnam, the consumer price index (CPI) of the country goes down 0.19% in October 2008.

The break-downs of Vietnam year-on-year CPI in October 2008 (in percentage.)

The General Statistics Office of Vietnam today announces the good news that inflation is down for the first month since last year. The CPI is 0.19% lower than that of September 2008.

Although the CPI in October is lower, it remaines 21.64% at year-to-date basis, and 26.72% at year-on-year basis.

In average, the CPI of the first ten-month period on 2008 has been up 23.15% from same period last year and up 48.2% since 2005.

The CPI in Vietnam is calculated weighted-average from a basket of ten categories, in which the first category named “food and groceries” has highest weight at 42%. This month, this category goes down by 0.42%, while the food alone goes down by 1.91%.

Despite of the reduction this month, this category remains the highest increase year-on-year among ten items in the basket, at 40.56%.

The most of this month reduction falls into the fifth category named “housing and construction materials”, in which the household utilities are included. This category is 1.08% lower than that of last month.

The exchange rate index, based on the price of US dollars, is down 0.05% in October. It has been increased 2.95% year-to-date, and 2,46% at year-on-year basis.  

Since 2005, the exchange rate index has been up only 4.45%, while to CPI of the country has been escalated by 48.2%.

While almost every items of price are lower or stand still on October, the gold price index goes up by 3.21% compare to the last month. Since 2005, this index has been up by more than two-fold, at 106.76%.  

Bui Van