According to the General Statistics Office, inflation over the past twelve months fell to 3.23% from the rate of 3.62% in September.
The average price increase in the ten months through October was 2.36%, the slowest pace in eleven years, and significantly lower than the Government target of 7% for the whole year.
Last week, Prime Minister Nguyen Tan Dung said in his address to the National Assembly that the Government targets inflation of 5% and growth of 6.2% for 2015.
In October, education costs posted the largest one-month increase at 1.31% but the rise was still lower than the 6.38% seen in September when schools and colleges hiked their tuition fees and a new school year boosted spending on stationery items.
Meanwhile transport costs dropped by 1.02% as a result of recent consecutive fuel price cuts.
Petrol prices have been slashed by VND3,300 per litre after eight consecutive rounds of cuts since reaching all-time record highs in July.
Utility bills and building materials as a single group stayed virtually flat in October with a modest decrease of 0.08%
Food costs and restaurant services, which made the biggest contribution to the consumer price index (CPI), only recorded a tiny 0.05% rise against the previous month due to abundant food supplies.
According to the GSO, many other commodities in the basket used to calculate CPI also posted modest rises compared with the previous month, indicating that purchasing power remained lacklustre.
In October, the price of gold slumped by 2.82% while the US dollar rose by 0.18% from the previous month.
