CPI rises over 3.3% in second quarter

CPI rises over 3.3% in second quarter

In June 2025, the consumer price index (CPI) rose by 0.48 per cent compared to the previous month and increased by 3.57 per cent year-on-year.

Nguyễn Thị Hương, Director General of the General Statistics Office, speaks at the press conference announcing socio-economic statistics for the second quarter and the first half of 2025. — Photo nhandan.vn

 Amid significant global economic volatility and rising domestic consumption demand, Việt Nam’s consumer price index (CPI) recorded a notable increase in the second quarter of 2025.

Alongside seasonal factors, adjustments in electricity and healthcare fees, and fluctuations in gold and US dollar prices, exerted a clear impact on household expenses, Nguyễn Thị Hương, Director General of the General Statistics Office reported.

According to data released on July 5 in Hà Nội, the CPI in June rose by 0.48 per cent compared to the previous month, with urban areas up 0.5 per cent and rural areas up 0.45 per cent. Year-on-year, June’s CPI climbed 3.57 per cent.

Overall in the second quarter, the CPI increased by 3.31 per cent against the same period in 2024. Among the 11 main commodity groups, prices rose in 10 groups while only postal and telecommunications services declined.

Consumption demand during the holidays marking Reunification Day and International Labour Day (30 April–1 May), as well as the Tết Đoan Ngọ festival, drove food and catering services prices up 3.69 per cent, contributing 1.24 percentage points to the overall CPI increase. Pork prices alone surged 12.75 per cent due to limited supply, adding 0.43 percentage points to CPI.

Housing, electricity, water, fuels and construction materials rose 5.73 per cent, with higher household electricity tariffs and building material costs adding 1.08 percentage points. Notably, healthcare and medicine prices soared 13.87 per cent, lifting CPI by 0.75 percentage points following adjustments to service price frameworks.

In contrast, fuel prices plummeted by 12.56 per cent in line with global trends, driving transportation costs down 3.63 per cent and subtracting 0.35 percentage points from CPI. Postal and telecommunications prices edged down slightly due to falling prices for older generation mobile phones.

By the end of June, global gold prices averaged $3,369.73 per ounce, up nearly 2 per cent from the previous month due to geopolitical instability and safe-haven demand. Domestically, however, gold prices declined 1.27 per cent as authorities adjusted market management policies to reduce monopoly practices.

Meanwhile, the US dollar index dropped 1.34 per cent globally amid expectations of Federal Reserve rate cuts, but domestic USD prices rose 0.32 per cent, reflecting demand for foreign currency to settle export–import transactions.

Core inflation for the first half of 2025 rose by 3.16 per cent year-on-year, slightly below the headline CPI increase of 3.27 per cent. The difference was attributed to notable price hikes in food, electricity and healthcare services — categories excluded from the core inflation calculation.

The General Statistics Office assessed that the Government and relevant ministries had proactively implemented comprehensive measures to keep inflation in check: reducing VAT and environmental protection tax on fuels, lowering lending rates, accelerating public investment disbursement, and ensuring smooth goods circulation.

These efforts contributed to macroeconomic stability, although inflationary pressures remain substantial in the second half of the year as electricity tariffs, service prices and consumption demand continue to rise. 

Bizhub