February saw consumer prices rise by 1.52 percent, the highest rate in eight years. The General Statistics Office attributed the sharp rise to Vietnam Electricity ending its electricity subsidy and an increase in food and transport costs during the Lunar New Year holidays (Tet) in February.
A woman selecting vegetables in a supermarket in Hanoi. Photo by Shutterstock/I’m Leohoho.
In the basket of goods and services that make up the consumer price index (CPI), prices rose in 10 major groups: housing and construction materials rose by 4 per cent, food and catering services by 1.61 percent as demand surged during Tet and transportation by 1.55 percent as petrol prices increased twice.
However, the year-on-year increase in the CPI was 0.7 percent, the lowest rate since 2016.
Inflation in 2020 measured 3.23 percent, well below the 4 percent target set by the National Assembly.