According to the latest data released by the General Statistics Office of Vietnam’s Ministry of Planning and Investment on September 6, 2024, the national Consumer Price Index (CPI) increased by 4.04% year-on-year in the first eight months of 2024. This figure reflects that while Vietnam’s economy faces some inflationary pressure, overall price levels remain relatively stable.

Specifically, the national CPI in August 2024 remained stable compared to July, rose by 1.89% compared to December 2023, and increased by 3.45% year-on-year. The statistics office’s data also shows that prices of consumer goods and services in August experienced both increases and decreases. Food prices and housing rental costs saw a month-on-month increase, while domestic finished oil prices declined in line with global prices.

Regarding the inflation trend this year, the statistics office pointed out that the CPI showed a gradual upward trend in the first five months of 2024, rising from 3.37% in January to a peak of 4.44% in May. However, entering June and July, the CPI growth rate slightly decreased to 4.34% and 4.36%, respectively. In August, the CPI growth rate continued to decline, rising only 3.45% year-on-year. This trend indicates that inflationary pressure in Vietnam is gradually easing.

The main factors contributing to the 4.04% year-on-year increase in the CPI for the first eight months of the year include: rising domestic rice and pork prices, pushing up food and dining service prices; increases in housing, electricity, water, fuel, and construction material prices. Additionally, factors such as tuition fee increases in some areas for the new academic year and adjustments in medical service prices also impacted the CPI.

Notably, although the national CPI in August 2024 remained stable compared to the previous month, prices of 10 out of 11 main consumer goods and services categories saw slight increases, with only transportation prices decreasing month-on-month. This indicates that most goods and services still face upward price pressure, albeit relatively moderate.

In addition to the CPI, the statistics office also released other important economic indicators. In the first eight months of this year, the core inflation rate rose by 2.71%, lower than the overall CPI increase, reflecting relatively stable price levels after excluding volatile factors such as food and energy.

In the precious metals market, the gold price index increased by 1.93% in August. Domestic gold prices fluctuated in line with world gold prices. As of August 27, 2024, the average world gold price was $2,495.53 per ounce, up 3.63% from July 2024. Vietnam’s domestic gold price index in August 2024 rose 1.93% month-on-month, increased 20.4% compared to December 2023, and was up 31.05% year-on-year. The average increase in the gold price index for the first eight months was 25.54%. This data reflects an increased attractiveness of gold as a safe-haven asset.

Regarding exchange rates, the US dollar price index rose by 0.64%. As of August 27, 2024, the international market’s dollar index fell 1.97% month-on-month. The average US dollar price in Vietnam’s domestic free market was about 25,329 VND/USD. In August 2024, the dollar price index decreased by 0.64% month-on-month, increased by 3.55% compared to December 2023, and rose by 5.86% year-on-year. The average increase for the first eight months was 5.85%. This indicates that despite some fluctuations, the US dollar exchange rate remains relatively strong overall.

Key points summary:

• Vietnam’s CPI rose 4.04% year-on-year in the first 8 months of 2024.
• August CPI remained unchanged month-on-month and increased 3.45% year-on-year.
• Core inflation rate rose 2.71% in the first 8 months of this year.
• CPI growth rate has been declining since its peak of 4.44% in May.
• Food, housing, tuition fees, and medical service prices were the main factors driving CPI growth.
• August gold price index increased 1.93% month-on-month and 31.05% year-on-year.
• US dollar price index decreased 0.64% month-on-month and increased 5.86% year-on-year.

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