Macro/ Strategy

Inflation was well controlled, reaching the inflation target at the year end

In 8M2025, the headline CPI increased by 3.25%. There were two groups having the impact on the inflation. They were (1) the food and foodstuff group (shortly called food group) and (2) the housing, electricity, water, fuel and construction materials group (housing group). With the inflation target of 4.5% in 2025, the target could be achieved when the growth of these two groups was opposite to each other.

CPI of the food group decreased gradually in Q3. In August, CPI of the food group increased by 2.6% YoY, which was the lowest increase in the year. In the food group, there are 3 main sub-groups: (i) food group, (ii) foodstuff and (iii) meal and drinking out. The food group had haven the smallest increase. On average in 8 months, the food group only increased by 0.87% YoY. 

On the other hand, the housing group recorded consecutive high increases in Q3. In addition to the warming real estate market and rising electricity and water prices during the hot season, which had increased house rents and pushed up the housing index, the increase in construction material prices had also pushed up real estate prices.