According to the report on the economic and social situation in February 2024 released by the General Statistics Office on February 29, February 2024 is the month of the Lunar New Year, leading to an increase in the demand for goods and services by the people.
In addition, the price of rice in the country increased in line with the price of exported rice; the prices of gasoline and gas increased in accordance with the world fuel prices, which are the main factors contributing to the 1.04% increase in the Consumer Price Index (CPI) in February 2024 compared to the previous month; an increase of 1.35% compared to December 2023 and an increase of 3.98% compared to the same period in 2023. The average CPI for the first two months of 2024 increased by 3.67% compared to the same period last year.
Within the 1.04% increase in the CPI in February 2024 compared to the previous month, there are 9 groups of goods and services with increasing price indices, and 2 groups with decreasing price indices.
Source: General Statistics Office.
Among the 9 groups of goods and services with increasing price indices, the transportation group had the highest increase of 3.09%, contributing to a 0.3 percentage point increase in the overall CPI.
Specifically: The index of public transportation services increased by 15.48% due to the high demand for traveling during the Lunar New Year; the gasoline index increased by 5.82%, the diesel index increased by 5.51% due to the impact of domestic fuel price adjustments; car wash and pump services increased by 2.47%; parking services increased by 1.86%; vehicle maintenance services increased by 0.52%; tire and motorcycle repair services increased by 0.21%; motorcycle spare parts increased by 0.15%.
The food and eating-out group increased by 1.71%, contributing to a 0.57 percentage point increase in the overall CPI. Specifically: Food prices increased by 1.75%, contributing to a 0.06 percentage point increase in the overall CPI; food prices increased by 1.98%, contributing to a 0.42 percentage point increase in the overall CPI; eating-out services increased by 1.04%, contributing to a 0.09 percentage point increase in the overall CPI.
The beverages and tobacco group increased by 0.8% due to the increased demand for consumption and gifting during the Lunar New Year, leading to a 1.17% increase in beer prices; tobacco prices increased by 0.56%; non-alcoholic beverage prices increased by 0.33%.
The culture, entertainment, and tourism group increased by 0.79% due to the increased shopping and traveling during the Lunar New Year, contributing to a 0.04 percentage point increase in the overall CPI. Price increases were mainly concentrated in the following categories: Flower, bonsai, and landscape prices increased by 4.19%; entertainment services increased by 1.09% (including a 15.41% increase in movie and music ticket prices); package tour prices increased by 1.67% (domestic tourism increased by 1.68%, international tourism increased by 1.63%); hotel prices increased by 0.99%.
In addition, the household appliances and utensils group increased by 0.26%. Prices of some items increased due to increased usage demand, such as: Glass, porcelain, and hot water bottles increased by 0.56%; beds, wardrobes, tables, chairs increased by 0.28%; other consumer goods increased by 0.26%; lighting increased by 0.24%; soaps and detergents increased by 0.23%; home appliance repair services increased by 0.22%; vacuum cleaners increased by 0.09%; kitchen equipment increased by 0.06%.
The clothing, headwear, and footwear group increased by 0.16% due to increased labor costs, material costs, and shopping demand for clothes during the Lunar New Year. Specifically, footwear services increased by 1.46% compared to the previous month; clothing services increased by 0.61%; footwear prices increased by 0.33%; other clothing increased by 0.31%; fabric prices increased by 0.25%; headwear prices increased by 0.19%; ready-made clothing prices increased by 0.05%.
According to statistics, the core inflation rate in February 2024 increased by 0.49% compared to the previous month and increased by 2.96% compared to the same period last year.
For the first two months of 2024, the core inflation rate increased by 2.84% compared to the same period last year, lower than the overall average CPI increase of 3.67%, mainly due to the prices of food, gasoline, medical services, and education services, which are excluded from the core inflation calculation.
According to the report from the General Statistics Office, domestic gold prices fluctuated in line with global gold prices. As of February 25, 2024, the average global gold price was $2,037.18 per ounce, an increase of 1.11% compared to January 2024 due to expectations that the US Federal Reserve (FED) will loosen monetary policy after the interest rate hike campaign to curb inflation.
In addition, the increased tension in the political situation and the slowdown in the Chinese economy prompted investors to seek gold as a safe haven, leading to an increase in gold demand.
In the country, the demand for gold for auspicious purposes during the God of Wealth Day led to a 2.01% increase in the gold price index in February 2024 compared to the previous month; an increase of 4.61% compared to December 2023; an increase of 16.67% compared to the same period last year; and for the first two months of 2024, the gold price index increased by 16.05%.
Internationally, the US dollar price increased after higher-than-expected inflation data for the US in January 2024 was released, and investors predicted that the FED would maintain interest rates in March 2024. As of February 25, 2024, the US dollar index on the international market reached 103.86 points, an increase of 0.66% compared to the previous month.
Domestically, the average US dollar price on the free market was around 25,115 VND/USD. In February 2024, the US dollar price index increased by 0.4% compared to the previous month; an increase of 0.92% compared to December 2023; an increase of 3.89% compared to the same period last year; for the first two months of 2024, the US dollar price index increased by 3.79%.
