Hanoi (VNA) – Vietnam’s consumer price index (CPI) rose 3.25% in the first eight months of 2025 compared to the same period last year. The rate is under control, but signals the need for vigilance amid persistent pricing pressures in key sectors.
According to data released by the National Statistics Office (NSO), the CPI in August increased 0.05% month-on-month, largely driven by seasonal surges in rental housing, education, and food services, as students return to urban centres for the new academic year. On a year-on-year basis, inflation in August stood at 3.24%.
Core inflation - stripping out volatile components such as food, fuel, and state-regulated services - rose 3.19% in the eight months, suggesting that underlying price trends remain relatively stable.
Nguyen Thu Oanh, head of the NSO’s Department of Service and Price Statistics, said eight of 11 major commodity and service categories saw price increases in August.
Housing and construction materials rose 0.21%, led by a 0.28% rise in rental costs in major cities. Electricity prices climbed 1.01%, reflecting elevated July consumption and extended billing cycles, while prices for home maintenance materials rose by 0.49% due to supply constraints and increased input costs.
Education-related expenses also edged up 0.21%, as private institutions adjusted tuition fees. Back-to-school spending drove up prices of school supplies, with paper, pens and stationery seeing price hikes of between 0.5% and 0.9%.
Increases were also seen in beverages and tobacco (0.17%), and household appliances (0.11%), goods and other services (0.11%).
Offsetting these rises, three key sectors experienced price declines in August.
Food and catering services dropped 0.06%, with pork prices falling by 2.42% due to concerns over African swine fever outbreaks. Related products such as frozen meat, offal, and animal fat also saw declines.
Transport costs fell by 0.11%, driven by a 2.06% drop in diesel and a 0.2% fall in petrol prices, reflecting recent domestic fuel adjustments. Used car and motorbike prices also softened as manufacturers introduced sales promotions.
Meanwhile, telecommunications prices edged down 0.04%, with smartphone and tablet prices falling due to ongoing retailer discount campaigns.
Core inflation for August rose 0.19% from the previous month, and 3.25% compared to August 2024. Over the first eight months, core inflation averaged 3.19%, slightly lower than headline CPI growth—indicating that structural inflation remains in check.
This gap reflects the impact of state-managed prices and volatile food and energy costs, which are excluded from core calculations, Oanh explained.
Meanwhile, the country’s gold market mirrored global trends in August, with prices continuing to rise amid geopolitical uncertainty and expectations of a more relaxed US monetary policy.
International gold averaged 3,418.45 USD per ounce, up 1.47% from July. Domestically, Vietnam’s gold price index rose by 1.2% in August and soared 48.62% year-on-year. From December 2024, gold prices have surged 36.51%, with the eight-month average up 40.25%—further reinforcing the precious metal’s status as a hedge against inflation.
In contrast, the domestic USD/VND exchange rate rose 0.36% in August and 4.43% year-on-year. This came despite a global decline in the US dollar index, which fell 0.14% to 98.11 points. Analysts attribute the discrepancy to rising import demand, capital outflows, and interest rate differentials./.
