Huong explained that the first quarter saw significant fluctuations in the global commodity markets due to various political, economic, and social factors across different countries. She said strategic competition between major powers continues to intensify, particularly with the new US tariff policies causing trade tensions and affecting global supply chains.

Ongoing military conflicts and political instability across the globe have forced many countries to maintain tight monetary policies, resulting in weak aggregate demand and slow global economic growth, she added.

Director of the NSO’s Service and Price Statistics Department Nguyen Thu Oanh identified factors contributing to the CPI increase in Q1, saying the food and food service group rising by 3.78%, contributing 1.27 percentage points to the overall CPI growth. Within this category, pork prices increased by 12.49% due to supply shortages amid high demand during holidays, adding 0.42 percentage point to the overall CPI increase. Rice prices went up 0.97%, contributing 0.02 percentage point, while fresh poultry prices climbed 1.06%.

Housing, electricity, water, fuel, and construction materials hiked 5.11% due to higher prices of cement, steel, sand, and rental housing, contributing 0.96 percentage point to the CPI expansion. Household electricity prices increased by 5.11% due to higher demand and the Vietnam Electricity's adjustment of average retail electricity prices from October 11, 2024, adding 0.17 percentage point to the overall CPI.

Pharmaceutical products and medical services jumped by 14.4%, contributing 0.78 percentage point to the CPI growth.

These increases were partially offset by a 2.4% decrease in transport costs as fuel prices dropped 9.73% and railway passenger transport services down 6.06% in Q1. Besides, the education group decreased by 0.61%, lowering the overall CPI by 0.04 percentage point, as several provinces and centrally-run cities exempted or reduced tuition fees for the 2024-2025 academic year. The postal and telecommunications group fell by 0.59%, reducing the CPI by 0.02 percentage point.

The NSO said core inflation, 3.01%, was lower than the average CPI increase primarily because food prices, electricity, and medical services – major contributors to CPI growth – are excluded when calculating core inflation.

In March alone, the CPI dropped slightly, by 0.03% from the previous month. However, it still rose 1.3% from December 2024 and 3.13% from the same period last year.

The Government has implemented numerous measures including ensuring stable supply chains, reducing lending rates, accelerating public investment, and cutting value added tax, Huong said, adding market prices remain stable and inflation under control.

CPI rises by 3.48% in Q3: GSO

Vietnam’s consumer price index (CPI) rose by 3.48% in the third quarter of 2024 compared to the same period last year, mainly fueled by the increasing prices of food in localities directly affected by Typhoon Yagi, and housing and education services, according to the General Statistics Office (GSO).