The consumer price index (CPI) in December 2024 increased by 2.94 percent compared to December 2023, according to the General Office of Statistics (GSO). This rise was attributed to adjustments in medical service prices, higher rental housing prices, and increased gasoline prices. Despite the December surge, the average CPI for 2024 rose by only 3.63 percent compared to 2023, staying below the National Assembly’s target.
Several factors contributed to the CPI increase in 2024:
- Food and catering services: This category saw a 4.03 percent rise, contributing 1.35 percentage points to the overall CPI. Notably, food prices surged by 12.19 percent, largely due to a 15.93 percent increase in rice prices, driven by export prices and heightened demand during holidays. Eating out costs also grew by 3.99 percent due to higher consumer demand and labour costs.
- Housing, electricity, water, fuel, and construction materials: Prices in this group rose by 5.2 percent, contributing 0.98 percentage points. Household electricity prices increased by 7.68 percent, influenced by higher demand and an adjustment in EVN’s retail electricity rates. Rental housing prices climbed by 4.6 percent, while household water prices rose by 8.33 percent.
- Drugs and medical services: A 7.16 percent increase in this category, driven by price adjustments under Circular No. 22/2023/TT-BYT and Circular No. 21/2024/TT-BYT, added 0.39 percentage points to the overall CPI.
- Education: Tuition fee hikes during the 2023–2024 and 2024–2025 school years in certain localities led to a 5.37 percent rise in the education price index, contributing 0.33 percentage points to the CPI.
- Transport: The transport price index grew modestly by 0.76 percent, contributing 0.07 percentage points.
Core inflation in December 2024 rose by 0.25 percent month-on-month and 2.85 percent year-on-year. For the full year, core inflation increased by 2.71 percent.
See also: Vietnam CPI Tracker