A Slight Rise in Vietnam’s CPI for May: Only One Commodity Group Records a Decline in Prices Compared to the Previous Month

Vietnam’s consumer price index (CPI) witnessed a 0.16% uptick in May 2025 compared to the previous month, with ten groups of goods and services experiencing price index increases, while the transportation group saw a decrease.

Specifically, the ten groups of goods and services with price index increases include:

– The housing, utilities, fuel, and construction materials group increased by 0.73% (impacting a 0.14 percentage point rise in the overall CPI). This was mainly driven by increases in the prices of home maintenance materials (up 1.20%), rental rates (up 0.64%), electricity (up 0.84%), and water supply (up 1.0%). Conversely, kerosene prices dropped by 3.09% due to adjustments made during the month.

– The miscellaneous goods and services group rose by 0.43%, with notable increases in jewelry (10.64% in line with domestic and global gold prices), body care products (0.52%), bags, wallets, and purses (0.48%), watch and jewelry repairs (0.40%), and ceremonial services (0.17%).

– The culture, entertainment, and tourism group climbed by 0.28%. Within this group, package tours saw the most significant increase of 1.09% (domestic tourism rose by 1.24%, while international tourism grew by 0.67%) due to heightened demand during the holiday period and the upcoming summer peak season. Additionally, hotel rates increased by 1.36%, guesthouses by 0.50%, sports facility rentals by 0.51%, and sports equipment prices by 0.15%. Conversely, prices for plants and flowers decreased by 1.61%, and musical instruments dipped by 0.02%.

– The post and telecommunications group rose by 0.21%. Mobile phone prices, including both regular and smart devices, witnessed increases (regular phones by 0.68% and smart devices by 0.28%). Accessories for smart devices and tablets also became more expensive, rising by 0.51%. Repair services for phones climbed by 0.31% due to increased demand for technology devices fueled by promotional campaigns. Additionally, labor costs and replacement part prices rose during this period.

– The household equipment and appliances group registered a 0.19% increase. Repairs for washing machines (up 0.64%), air conditioners (up 0.40%), and refrigerators (up 0.37%) became more costly as the season transitioned to the hotter months, leading to higher maintenance service and replacement part costs. Hot water flasks became 0.48% more expensive, while prices for bath and hair soap rose by 0.45%. Plastic goods and electric fans saw increases of 0.39% and 0.36%, respectively.

– The beverages and tobacco group rose by 0.14% due to increased production costs and consumer demand. Carbonated drinks witnessed a 0.49% price hike, while bottled/canned energy drinks became 0.17% more expensive. Smoking tobacco and beer prices also increased by 0.18% and 0.10%, respectively.

– The clothing, hats, and footwear group experienced a 0.05% increase. Shoe repair services became 0.40% more expensive, while hat and raincoat prices rose by 0.52%. Tailoring services climbed by 0.33%, fabric prices by 0.12%, and other clothing items such as gloves and socks increased by 0.04%.

– The food and catering services group saw a modest increase of 0.03%. While there was a decrease in the prices of food staples (down 0.18%) and food (down 0.04%), dining out became 0.28% more expensive.

– The medicine and healthcare services group rose slightly by 0.02%, mainly due to a 0.25% increase in the prices of medical devices such as fever reducers, blood pressure monitors, and medical cotton/bandages. This increase was attributed to rising production costs and an increased focus on health among the population. Additionally, prices for non-steroidal anti-inflammatory drugs, gout medications, and bone health supplements rose by 0.18%, while anti-allergy medications and treatments for hypersensitivity increased by 0.15%. Respiratory medications also became 0.11% more expensive.

– The education group witnessed a minimal increase of 0.01%, with stationery prices rising by 0.12%. Specifically, writing instruments became 0.24% more expensive, while other stationery and learning materials increased by 0.17%. Paper products also saw a 0.11% price hike.

Conversely, the transportation group experienced a 0.42% decrease, primarily due to a 2.33% drop in diesel prices and a 1.20% decline in gasoline prices influenced by global fuel price adjustments.

However, some transportation-related items became more expensive, including vehicle maintenance services (up 0.36%), water passenger transport (up 0.89%), bus transport (up 0.22%), road transport (up 0.16%), car washing and tire inflation services (up 0.24%), and vehicle spare parts (up 0.25%).

Core inflation for May 2025 rose by 0.33% compared to the previous month and by 3.33% compared to the same period last year. For the first five months of 2025, core inflation averaged a 3.10% increase compared to the same period in 2024, slightly lower than the 3.21% rise in the overall CPI average. This was mainly due to increases in the prices of food staples, electricity, and healthcare services, which are excluded from the core inflation basket.