Vietnam sees February inflation up 3.98%, retail sales up 8.5% on Tet season

Vietnam's consumer price index (CPI), an indicator of inflation, increased 3.98% year-on-year in February, while retail and services revenues rose 8.5%, the General Statistics Office (GSO) reported.

February’s CPI rose 1.04% from January and 1.35% from December 2023, the GSO noted, attributing the hike to the Lunar New Year (Tet) holiday stimulating consumption. Other factors are higher global prices of rice and fuel that pushed up domestic prices of those two products.

The Tet holiday, the most important fest during the year, last from February 8 to 14.

February’s CPI rise was driven by a 3.09% hike in transportation, 1.71% in food and restaurant services during the Tet high season. Meanwhile, other sectors recorded growth rates of between 0.02% and 0.8%. Two sectors of education and telecommunication-postal service fell 0.42% and 0.17%, respectively.

On average, in January-February, the CPI rose 3.67% year-on-year, while core inflation went up 2.84%.

Meanwhile, retail and services revenues increased 8.5% year-on-year in February to VND509.7 trillion ($20.68 billion) as the Tet holiday boosted consumer purchases, the GSO noted. In the first two months of this year, retail and services revenues expanded 8.1%, reaching VND1,031.5 trillion ($41.85 billion).

In the two-month period, the retail sector accounted for the biggest portion at VND798.3 trillion ($32.39 billion), up 6.8% year-on-year; followed by accommodation and restaurant with VND118.3 trillion ($4.8 billion), up 14%; tourism with VND9 trillion ($365.1 million), up 35.8%; and other services with VND105.9 trillion ($4.3 billion), up 9.7%.