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Vietnam drinks and tobacco prices edge higher in December 2024

Drinks and tobacco prices increased by 0.20 percent in December 2024 compared to November, reaching a Consumer Price Index (CPI) of 102.40, according to Vietnam’s Consumer Price Index. This reflects a slight monthly rise in the category.

Year-on-year, drinks and tobacco prices were up 2.40 percent in December 2024 over December 2023. For the full year, prices in this category rose by 2.42 percent compared to 2023.

The Consumer Price Index (CPI) for drinks and tobacco in Vietnam reflects the changes in prices for alcoholic beverages, non-alcoholic drinks, and tobacco products. This category is an important part of the overall CPI, as it tracks the costs of essential goods that are commonly consumed by households.

In recent years, the CPI for drinks and tobacco in Vietnam has shown some volatility, influenced by a variety of factors. The price of alcoholic beverages, including beer, spirits, and wine, has been affected by increasing demand, taxation policies, and the rising popularity of both domestic and imported brands. The beer market, in particular, is significant in Vietnam, as the country is one of the largest consumers of beer in Southeast Asia. Prices for local and imported beers can fluctuate based on production costs, taxes, and seasonal demand.

Non-alcoholic drinks, such as soft drinks, bottled water, and juices, also contribute to the CPI. The rising cost of ingredients, distribution, and packaging, along with inflationary pressures, can lead to price increases in this segment. However, consumer preferences for healthier and lower-sugar beverages are pushing companies to innovate and offer a wider range of products.

The tobacco segment of the CPI is similarly influenced by regulatory changes, such as increased excise taxes and anti-smoking policies, which have been gradually implemented to reduce tobacco consumption and improve public health. As the government raises taxes on tobacco products, prices tend to increase, influencing the CPI. In addition to these factors, global supply chain issues, such as fluctuations in raw material costs for packaging and ingredients, can also impact the prices of drinks and tobacco products.

Overall, the CPI for drinks and tobacco in Vietnam is influenced by a mix of domestic consumption trends, government policies, and international economic factors. The sector continues to evolve, with increasing demand for healthier beverage options and ongoing changes in the regulatory environment for tobacco products.

See also: Food and Beverage Industry in Vietnam

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