HCMC’S CPI RISES 4.27% IN JAN-MAY

Shoppers inspect products at a supermarket in HCMC - PHOTO: VNA

HCMC – The consumer price index (CPI) in HCMC rose by 4.27% in the first five months of this year compared to the same period last year, with the healthcare and pharmaceutical group leading at 17%, according to the city’s statistics authority.

At a meeting held on June 3 to review the city’s socio-economic performance in May and the year to date, Nguyen Khac Hoang, head of the HCMC Statistics Office, said eight out of 11 commodity and service groups recorded price increases. Among these, the highest increase in May alone was in the other goods and services category, which rose by 1.33%.

Conversely, three groups posted a decline in prices, with the transport group dropping the most, by 0.4% month-on-month and 1.8% in the five-month period.

Despite signs of recovery in April and May, driven by festivals, tourism, trade, services, and industrial production, Hoang warned that the city’s economy faces significant headwinds in the second half of the year. The U.S. reciprocal tariff issue remains a challenge for local manufacturers, and the disbursement of public investment has reached only over 10% as of the end of May, showing little progress.

Hoang noted that inflation in HCMC is running higher than in neighboring provinces such as Binh Duong and Ba Ria-Vung Tau, where CPI growth is estimated at 1.5-2%. He recommended a review of the city’s consumption stimulation and market stabilization programs to address the trend.

Hoang also pointed out that current growth in HCMC still relies on traditional drivers such as investment, exports, and consumption, with no clear breakthroughs. He urged early coordination among HCMC, Binh Duong and Ba Ria-Vung Tau to identify and activate new growth engines for the forthcoming merger of HCMC, aiming to meet the national growth target of at least 8%.

Source: The Saigon Times