Tết spending pushes Việt Nam’s February CPI up 1.14 per cent

Tết spending pushes Việt Nam’s February CPI up 1.14 per cent

Việt Nam’s CPI rises 1.14 per cent in February as Tết demand drives up food and travel costs.

People shop ahead of the Tết Holiday. — VNS Photo Mai Hương

Việt Nam’s consumer price index (CPI) rose 1.14 per cent in February from the previous month, mainly driven by higher food, catering and transport costs during Tết (Lunar New Year) Holiday, according to the National Statistics Office (GSO).

The February CPI increased 1.19 per cent compared to December 2025 and rose 3.35 per cent year-on-year.

On average in the first two months of 2026, CPI grew 2.94 per cent compared with the same period last year.

All major groups of consumer goods and services recorded price increases in February.

Food and catering services recorded the largest increase, rising 2.02 per cent and contributing 0.72 percentage points to overall CPI growth, driven by higher food prices and dining-out costs during the Tết holiday.

Prices in culture, entertainment and tourism rose 1.36 per cent as holiday demand surged, with notable increases in flowers, entertainment services and package tours.

Transport costs climbed 1.23 per cent, mainly due to a sharp rise in airfares during the peak travel season, along with higher road transport and fuel prices.

Meanwhile, other goods and services increased 1.30 per cent, partly reflecting higher jewellery prices in line with rising domestic gold prices and stronger demand for personal care services during the holiday period.

Housing and construction materials rose 0.56 per cent, while household appliances edged up 0.57 per cent. Beverage and tobacco prices increased 1.18 per cent amid stronger Tết gift demand, while healthcare and education costs posted modest gains.

The GSO noted that average core inflation in the first two months of 2026 increased 3.47 per cent, higher than the overall CPI growth rate as volatile items such as food and energy are excluded from the core inflation basket.

Gold prices in Việt Nam surged in February, with the domestic gold price index rising 11.42 per cent from the previous month and 88.42 per cent year-on-year, driven partly by strong buying during the God of Wealth Day after the Lunar New Year. The increase also followed global trends, as average gold prices reached US$5,023.09 per ounce by February 28, up 6.12 per cent month-on-month amid economic and geopolitical uncertainties.

Meanwhile, the US dollar weakened slightly in February. The US dollar index in the international market stood at 97.31 points as of February 28, down 0.81 per cent from the previous month. In Việt Nam, the US dollar price index fell 0.89 per cent month-on-month but remained 2.31 per cent higher year-on-year, with the index rising 2.74 per cent in the first two months of 2026 compared with the same period last year.

Analysts say Việt Nam’s inflation trend broadly mirrors global developments, as many economies continue to face price pressures from geopolitical tensions, trade frictions and fluctuating energy costs.

Despite the recent increases, inflation in Việt Nam remains within the Government’s target range of about 4–4.5 per cent for 2026, supported by stable macroeconomic policies and resilient domestic demand. Economists note that maintaining price stability will remain a key task for policymakers as the country seeks to sustain growth while managing external risks. 

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