Tết shopping spree pushes up CPI by 3.98 per cent in February
Demand for gold also increased on the prolonged geopolitical tensions and China’s economic slowdown, pushing investors to seek gold as a safe haven.
The consumer price index (CPI) rose by 3.98 per cent in February over the same period last year on high shopping demand for Tết (Lunar New Year) holidays and rising rice prices, according to the General Statistics Office (GSO).
Compared to January, CPI rose by 1.04 per cent.
GSO said that the shopping spree for Tết earlier this month, coupled with rising rice prices following increases in the global market has pushed CPI in February.
Among 11 categories of goods and services in the CPI basket, nie saw increases in prices while two dropped.
On average, CPI rose 3.67 per cent in the first two months of this year. Core inflation increased by 2.84 per cent.
GSO said that high rice export prices, which together with high consumption demand for rice on the day of worship Kitchen Gods and Tết holidays, pushed up rice prices in the domestic market by 21.6 per cent which was translated into a 0.55 percentage point increase in overall CPI in the first two months of this year.
The electricity category saw an increase of 9.44 per cent on higher demand, pushing up CPI by 0.31 percentage points.
Education services rose by 8.47 per cent as some provinces and cities have increased school fees for 2023-24 which caused an increase of 0.52 percentage point in overall CPI.
Medicines and healthcare services also increased by 6.52 per cent. Housing and building materials was up by 5.66 per cent on rising input costs which pushed up CPI by 1.07 percentage points.
Food saw a slight increase of 0.89 per cent.
Factors which hold up CPI included the decrease of 1.45 per cent in telecommunications services.
In February, gold prices in the domestic market fluctuated following the development of world gold prices.
As of February 25, the world gold price was at US$2,037.18 per ounce, up 1.11 per cent over January on expectation that the US Federal of Reserves might loosen the monetary policies after rising rates to control inflation.
Demand for gold also increased on the prolonged geopolitical tensions and China’s economic slowdown, pushing investors to seek gold as a safe haven.
In the domestic market, gold prices rose by 2.01 per cent over February and 16.67 per cent over the same period last year. — VNS
