High Tet Consumer Demand Pushes up Cost of Living in Vietnam

Tuan Minh

10:56 24/02/2016

BizLIVE - Consumer prices in Vietnam increased 0.42% month-on-month in February when the Tet holiday fell in.

High Tet Consumer Demand Pushes up Cost of Living in Vietnam

Consumer prices in Vietnam rose 0.42% month-on-month in February.

Vietnam’s consumer price index (CPI), a measure of inflation, has climbed 0.42% month-on-month in February, which coincided with the long Lunar New Year (Tet) festival, according to data of the General Statistics Office (GSO).
The rise in the index was driven by shooting domestic demand during the biggest festivity of the year despite the continued downtrend of oil prices.
GSO data shows that prices of eight out of 11 commodity categories used for CPI calculation have gone up in the month, with the restaurant and catering services group posting the sharpest growth of 1.98% from January thanks to the “Tet effect.”
On the contrary, prices of transport services have declined 3.96% in the month, the strongest decrease over the past one year as retail fuel prices were consecutively slashed.
The CPI in Ho Chi Minh City has edged up 0.05% in February, the weakest rise among cities and provinces having their indexes announced by the GSO.
During February, the price of gold in Vietnam advanced 3.02% month-on-month while that of the U.S. dollar slipped 0.64%.