Vietnam’s consumer price index (CPI) rose 0.48% in June 2025 compared to the previous month and 3.57% year-on-year, driven by surging prices in housing materials - especially sand, stone, and bricks - and global fuel price hikes.

According to a report by the General Statistics Office (GSO) released on July 5, CPI in the second quarter increased by 3.31% year-on-year, and by 3.27% for the first six months of 2025 compared to the same period in 2024.

Ten out of 11 commodity groups saw CPI increases in June. The transport group posted the highest rise at 1.66%, followed by household equipment and services, while education registered the smallest uptick at 0.01%. Postal and telecommunications prices fell by 0.02%.

The food and catering services group rose 3.69%, contributing 0.24 percentage points to the overall CPI, with pork prices up 12.75% due to supply constraints and increased festive demand. Food prices rose 4.15%.

The housing, electricity, water, fuel, and construction materials group increased 5.73%, pushing up CPI by 1.08 percentage points. Electricity prices alone climbed 5.51% following two rate adjustments by Vietnam Electricity (EVN) in October 2024 and May 2025.

Healthcare services saw a sharp 13.87% rise due to adjustments in hospital fees under Circular No. 21/2024/TT-BYT issued by the Ministry of Health, raising CPI by 0.75 percentage points.

Other notable increases came from personal items (4.71%) and notarization, insurance, and miscellaneous services (up 17.26%).

Despite these increases, transportation costs decreased by 3.63% - mainly due to a 12.56% drop in fuel prices - pulling overall CPI down by 0.35 percentage points.

Core inflation in check

Core inflation in June rose 0.31% month-on-month and 3.46% year-on-year. For the first six months of 2025, core inflation increased by 3.16%, slightly below the 3.27% rise in the general CPI. This is attributed to excluded components such as food, electricity, and healthcare services.

Nguyen Thi Huong, Director of the General Statistics Office, warned that while global inflation has eased since the 2022–2023 peak, risks remain elevated. Global commodity prices remain volatile due to geopolitical instability, rising freight rates, and climate change impacts.

Vietnam’s high dependence on imported raw materials and the strengthening US dollar have also increased input costs, pressuring domestic prices.

Additionally, factors such as public investment stimulus, tourism growth, and a possible rebound in credit could lead to demand-pull inflation.

To manage inflation, Huong stressed the need to ensure smooth supply chains and monitor prices of essential goods. She urged ministries and localities to take proactive measures against unreasonable price hikes and market manipulation.

PV