The consumer price index (CPI) is expected to increase by more than one percent in January 2007 due to adjustments to prices of essential commodities such as electricity and coal, as well as complications of bird flu and foot-and-mouth disease, according to the Domestic Management Market Group.

In addition, prices of consumer goods such as rice and sticky rice and other staple food are likely to rise in January and February 2007 due to a high purchasing power during the lunar New Year (Tet) holiday which falls on February 17.

According to market analysts, the recurrence of bird flu and its complications would drive the prices of food and foodstuff up during the Tet holiday.