Vietnam inflation rises 0.05% from April to May due to scorching weather, high pork prices

Vietnam's consumer price index (CPI), an indicator of inflation, rose 0.05% from April to May, the General Statistics Office (GSO) said Wednesday.

The May index rose 1.24% from December 2023 and 4.44% from May 2023, it added.

The GSO attributed the hike to the scorching weather pushing up electricity consumption and consequently power prices, and high pork prices due to the impacts of African swine fever (ASF) from end-2023.

From January-May 2024, Vietnam’s CPI increased 4.03% year-on-year, while core inflation increased 2.78%, the GSO noted.

In May, the price index of the food and restaurant service sector rose 0.38%, adding 0.13 percentage points to the overall CPI hike.

In particular, the price of foodstuffs fell 0.26% thanks to the current harvest, but the price of food went up 0.59% due to processed vegetables, pork, coffee and tea, and dairy products.

Additionally, the hot weather and the April 30-May 1 holiday encouraged outdoor activities and dining services, leading to a higher price index for restaurant services.

Other sectors such as housing and construction materials, culture, tourism, recreational activities, and beverage-tobacco recorded hikes between 0.12% and 0.38%. Sectors with minimal hikes of 0.01% or negative growth of up to 1.73% were healthcare and medicine, apparel, telecom-postal services, education, and transportation.

Meanwhile, May’s retail and services revenue decreased 0.1% from April as demand cooled after the four-day holiday. In terms of year-on-year change, revenue was up 9.5% to VND519.8 trillion ($20.4 billion), thanks to a strong performance in the tourism sector.

In the first five months of this year, retail and services revenue expanded 8.7% year-on-year to VND2,580.2 trillion ($101.4 billion).

In the five-month period, the retail sector accounted for the biggest portion of total revenues at VND1,998.2 trillion ($78.5 billion), up 7.4% year-on-year; followed by accommodation and restaurant establishments with VND296.3 trillion ($11.6 billion), up 15.1%; tourism with VND24.2 trillion ($950.7 million), up 45.1%; and other services with VND261.5 trillion ($10.3 billion), up 8.8%.