July CPI Rises 0.11% Month-Over-Month

7 August, 2025

CPI July 2025 Growth Rate compared to the previous month. Source: Statistics Office

The 0.11% increase in CPI in July compared to the previous month was driven by nine groups of goods and services with rising price indices, while two groups experienced a decrease.

The nine groups of goods and services that witnessed a rise in their price indices include:

– Housing, electricity, water, fuel, and building materials group increased by 0.36%, mainly due to price hikes in certain items. Maintenance material prices rose by 1.96% as a result of escalating prices of bricks, sand, and stones, coupled with increased production and transportation costs, as well as high construction demand. Household electricity prices surged by 1.82% due to heightened electricity usage during prolonged hot weather in numerous regions, especially in the North and Central regions. Additionally, from May 10, 2025, the Vietnam Electricity Group (EVN) implemented an increase in household electricity prices. Kerosene prices climbed by 2.64%, influenced by multiple price adjustments made during the month. Conversely, some groups witnessed a decrease in price indices for July: Rental prices declined by 0.45% as July coincided with the summer vacation, leading to a reduction in the number of tenants as students returned to their hometowns. Many landlords lowered rents to retain tenants.

– Beverage and tobacco group experienced a 0.25% increase due to heightened summer demand and rising production costs. Prices of bottled, canned, and boxed energy drinks rose by 0.52%, while various types of beer witnessed a 0.35% increase. Smoking tobacco prices climbed by 0.30%, carbonated soft drinks by 0.16%, and mineral water and liquor by 0.15% each.

– Culture, entertainment, and tourism group saw a 0.20% increase, with sports facility rental fees rising by 0.34%, television and internet fees by 0.32%, book prices by 0.27%, and package tour prices by 0.84%. Conversely, some items witnessed decreasing price indices, such as sports equipment by 0.12% and children’s toys by 0.04%.

– Food and catering services group increased by 0.18% (impacting a 0.06% rise in the overall CPI), comprising a 0.15% increase in food prices, a 0.16% decrease in staple food prices, and a 0.39% rise in dining-out prices.

– Household equipment and appliances group rose by 0.10%, with insecticide prices climbing by 0.43%, flashlights and batteries by 0.40%, gardening tools by 0.39%, soap and detergents by 0.37%, household appliance repair services by 0.24%, beds, cabinets, tables, and chairs by 0.20%, household textiles by 0.16%, domestic helper services by 0.10%, and glass, porcelain, and enamel products all increasing by 0.07%.

– Apparel, headwear, and footwear group witnessed a 0.06% increase, with footwear services rising by 0.33%, fabric prices by 0.20%, headwear by 0.15%, ready-to-wear clothing by 0.06%, tailoring services by 0.05%, and other apparel-related services by 0.04%. Shoe prices experienced a slight increase of 0.02%.

– Medicine and healthcare services group rose by 0.03%, influenced by exchange rate fluctuations that impacted the cost of importing pharmaceuticals and raw materials. Medical equipment prices increased by 0.23%, vitamins and minerals by 0.22%, non-steroidal anti-inflammatory drugs for pain, fever, and inflammation, as well as drugs for gout and bone-related conditions, by 0.21%. Anti-infective medications and antiparasitic agents rose by 0.16%, and drugs for the respiratory system and digestive system both increased by 0.11%.

– Education group experienced a slight increase of 0.01%, with stationery prices rising by 0.03%. Specifically, writing instrument prices climbed by 0.16%, while paper products and other stationery and educational supplies rose by 0.08%.

The two groups of goods and services that witnessed a decrease in their price indices include:

– Post and telecommunications group decreased by 0.15%, with accessories for smartphones and tablets dropping by 1.89%, smartphones and tablets by 0.71%, conventional mobile phones by 0.41%, and fixed-line phones by 0.01%. Conversely, telephone repair services witnessed a 0.29% increase in prices.

– Transport group declined by 0.48% (resulting in a 0.05% decrease in the overall CPI). Gasoline prices dropped by 1.50%, influenced by domestic price adjustments that closely followed global market trends. Additionally, prices of used cars decreased by 0.45%, while new cars and motorcycles experienced a 0.10% drop as businesses offered promotional programs to support consumers. Conversely, some groups witnessed price index increases, such as passenger transport by rail, which rose by 10.08%, air transport by 5.43%, water transport by 0.21%, and road transport by 0.15%, driven by heightened travel demand during the summer holidays. Spare parts prices increased by 0.32%, motorcycle tires and inner tubes by 0.24%, and bicycle tires and inner tubes by 0.16%, influenced by rising import costs.

Core inflation in July rose by 0.21% compared to the previous month and by 3.3% compared to the same period last year. On average, in the first seven months of 2025, core inflation increased by 3.18% over the same period last year, slightly lower than the 3.26% rise in the average CPI. The primary reason for this difference is that food, electricity, healthcare, and education services are excluded from the core inflation calculation but significantly impact CPI.

Nhat Quang

– 09:05 06/08/2025