The General Statistics Office’s report on January 6th revealed a 0.29% month-over-month rise in the consumer price index (CPI) for December 2024. In comparison to December 2023, the CPI for December increased by 2.94%.
The rise was attributed to healthcare service price adjustments implemented by several localities in accordance with Circular No. 21/2024/TT-BYT, coupled with increases in housing rental and fuel prices.
The CPI for the fourth quarter of 2024 rose by 2.87% year-over-year. For the entire year of 2024, the CPI increased by 3.63% compared to the previous year, meeting the National Assembly’s target.
Out of the 0.29% CPI increase in December 2024 compared to the previous month, nine groups of goods and services witnessed rising price indices, while two groups experienced a decline.
Among the nine groups of goods and services with rising price indices, healthcare and pharmaceutical products experienced the highest increase of 2.19%. This was largely due to a 2.84% rise in healthcare service prices as a result of healthcare service price adjustments by certain localities based on the basic salary of VND 2,340,000.
Additionally, the transition to winter and significant temperature variations between day and night led to an increase in flu and respiratory illnesses. Consequently, there was a higher demand for pain relievers, fever reducers, respiratory medications, vitamins, and minerals among the populace.
The transportation group followed with a 0.57% increase, mainly driven by heightened travel demands during the year-end period. This resulted in a rise in passenger transport prices by rail (4.03%), air (2.06%), taxi (1.24%), bus (0.16%), road (0.11%), and waterway (0.09%). Fuel prices also witnessed an increase of 1.21%, while lubricant oil prices rose by 0.16% following adjustments made during the month. Furthermore, vehicle maintenance prices climbed by 0.3%.
The housing, electricity, water, fuel, and construction materials group experienced a 0.53% increase, primarily driven by rising rental prices. Apartment and room rental rates increased by 0.76% due to heightened demand for condominiums and rental properties, coupled with soaring real estate prices. Electricity prices for household use rose by 0.75% following adjustments made by the Vietnam Electricity Group (EVN) to retail electricity prices from October 11, 2024. Additionally, home repair services witnessed a 0.44% increase, while other housing-related services rose by 0.12% due to heightened year-end demands. Construction material prices also increased by 0.11% as a result of rising cement and steel costs driven by consumer demand.
The clothing, headwear, and footwear group saw a 0.28% increase due to rising labor costs, material expenses, and year-end shopping demands. Specifically, prices for ready-made garments rose by 0.39%, while clothing repair services increased by 0.29%. Fabric prices went up by 0.26%, and footwear services witnessed a 0.2% rise. Headwear prices also climbed by 0.17%.
The two groups of goods and services that experienced a decline in their price indices were the postal and telecommunications group, which decreased by 0.03%, and the food and catering services group, which saw a 0.13% drop.
According to data from the General Statistics Office, the CPI for the fourth quarter of 2024 rose by 2.87% compared to the same period in the previous year. This included increases in the price indices of various goods and services: other goods and services (6.97%), healthcare and pharmaceutical products (6.29%), housing, electricity, water, fuel, and construction materials (4.81%), food and catering services (4.15%), beverages and tobacco (2.33%), cultural, recreational, and tourism activities (2.20%), household equipment and appliances (1.41%), clothing, headwear, and footwear (1.14%). However, the postal and telecommunications group experienced a decrease of 0.52%, while education witnessed a decline of 0.81%, and transportation decreased by 2.49%.
For the entire year of 2024, the CPI rose by 3.63% compared to 2023, remaining below the target set by the National Assembly. According to the analysis of the General Statistics Office, this was primarily due to a 4.03% increase in the price index of food and catering services compared to the previous year, which contributed to a 1.35-percentage-point rise in the overall CPI.
The price index of housing, electricity, water, fuel, and construction materials rose by 5.2% year-over-year, contributing to a 0.98-percentage-point increase in the overall CPI. This was largely driven by a 7.68% increase in electricity prices for household use due to both increased demand and adjustments in retail electricity prices by EVN, which alone contributed to a 0.25-percentage-point rise in the CPI. Additionally, rental prices for both leased and owner-occupied dwellings increased by 4.6%, contributing to a 0.48-percentage-point rise in the CPI. Moreover, water supply prices rose by 8.33% compared to the previous year.
The price index of healthcare and pharmaceutical products increased by 7.16%, contributing to a 0.39-percentage-point rise in the overall CPI. The education price index rose by 5.37%, while the transportation price index increased by 0.76%, contributing to a 0.07-percentage-point rise in the CPI.
On the other hand, the price index of postal and telecommunications services declined by 1.02% compared to 2023, acting as a moderating factor in the overall CPI increase. This was attributed to reduced prices for older-generation phones as businesses introduced promotional programs and incentives for smartphone purchases.
According to the report, core inflation for December 2024 rose by 0.25% compared to the previous month and by 2.85% compared to the same period in the previous year. For the entire year of 2024, core inflation increased by 2.71% compared to 2023, remaining below the overall CPI increase of 3.63%. This was mainly due to the exclusion of food, electricity, educational services, and healthcare services from the calculation of core inflation, despite their significant impact on the overall CPI.
Gold prices in Vietnam fluctuated in tandem with global gold price movements. The gold price index for December 2024 decreased by 1.38% compared to the previous month but increased by 31.07% year-over-year. For the entire year of 2024, the gold price index rose by 28.64%.
As of December 31, 2024, the US dollar index reached 106.98 points, representing a 1.46% increase compared to the previous month. In Vietnam, the average free-market exchange rate fluctuated around VND 25,488 per USD. The US dollar index for December 2024 increased by 0.09% compared to the previous month, 4.31% year-over-year, and 4.91% for the entire year of 2024.
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