After several months of steady figures, Vietnam's consumer price index (CPI) rose 1.31% higher month-on-month in September 2010, known the highest level for September in any year since 2000. The annual percentage change in a country’s CPI is mainly used as a gauge for inflation, thus, is among the most closely watched national economic statistics. The increase in its figures compared to that of August is said to have been caused by the combination demand pull, imported inflation, and policy changes. On average, CPI in the first nine months of this year was up 8.64% from that of last year, as seen from the records of the General Statistics Office. The increase is between 0.34 - 12.02% in 10 out of 11 groups of commodities, among the most significant increase was seen in the educational products and services. Housing and construction materials, transport, restaurant and related services followed in the list. Commodities and other services showed a 0.57% increase, while entertainment and tourism services rose by 0.48% and beverages and tobacco by 0.44 percent. The prices of medicines and medical services went up by 0.35%. According to experts, the adjustments made against the VND-USD exchange rate due to the strengthening of the dollar is another contributory factor to the sharp increase in the September CPI. The US dollar went up by 1.61% in value against August and 7.35% against September 2009. The country’s two economic hubs,

${bigcity_Hanoi:"Hanoi"} and ${bigcity_Ho_Chi_Minh_City:”Ho Chi Minh City”}, showed an increase in its September CPI by nearly 1% against August despite measures to stabilize the country’s known eight essential goods.

Authorities recognize the hurdle in maintaining the country’s inflation at 8% after foreseeing more complicated challenges, including the instability of the world economy, epidemics and natural disasters. Along with that, the trend of increasing CPI during the fourth quarter of every year is also expected. Meanwhile, Vietnam continues to take a number of measures to hopefully curb inflation to a single digit this year.