Annual CPI kept at 3.63%, enabling economic growth in 2025
The 3.63% increase in the consumer price index (CPI) for the whole of 2024 not only reflects the Government's efforts in price management, but also demonstrates the economy's resilience against external "headwinds".
Amidst unpredictable fluctuations in the global economy, Vietnam successfully kept the CPI under control achieving the target set by the National Assembly for 2024 at 3.63%.
The number was released at a press conference organised in Hanoi on January 6 by the General Statistics Office (GSO) to announce socio-economic statistics for the fourth quarter and 2024.
Inflation kept at reasonable level
Nguyen Thu Oanh, Director of the GSO’s Department of Price Statistics, said that the Q4 index increased 2.87%, and that in December increased 2.94% year-on-year. She attributed the increase to the rising price of rice following export trends, food services, the impact of natural disasters, and growing demand during the holidays. Specifically, food prices grew by 12.19% year-on-year, rice up 15.93%, and catering services up 3.99%. The prices of housing, electricity, water, fuels, and construction materials expanded by 5.2% year-on-year. In addition, the prices of drugs and medical services increased by 7.16%; educational services up 5.37%, and transportation up 0.76%.
Meanwhile, post and telecommunications prices in 2024 contracted by 1.02% compared to 2023 due to the decrease in the prices of old-generation phones as businesses launched discount programmes to stimulate demand for smartphones. Domestically, in December, the gold price decreased by 1.38% compared to the previous month, but rose 31.07% over the same period last year. For the whole year, gold is up 28.64%. The average US dollar price in the free market was around 25,488 VND, representing a rise of 4.91% year-on-year.
Fruits come from concerted efforts
The CPI fluctuated in 2024, but most importantly, average CPI increased 3.63% compared to 2023, achieving the target set by the National Assembly. This is a result of the continuous efforts of the Government and relevant agencies in controlling inflation and ensuring macroeconomic stability.
To control inflation, Oanh said that the Government monitored market developments, adjusting prices of essential goods, preventing prices from spiking due to shortages. Along with that, the Government’s monetary policy has helped reduce lending interest rates and stabilised the foreign exchange market.
"Domestically, the Government and the Prime Minister have proactively, resolutely, and closely directed ministries, branches, and localities to promote growth, maintain macroeconomic stability, and control inflation. Accordingly, prices of goods and services are stable, and inflation is under control," she noted.
Regarding fiscal policy, she emphasised policies to reduce the value added tax, environmental protection tax on gasoline, exemption and extension of taxes, fees, and land use fees. At the same time, the market remained fluid, promoting the circulation of goods and services to maintain stable supply.
The core inflation, which reflects the real "health" of the economy, recorded an increase of 2.71% in 2024, lower than the average CPI increase. Oanh said that excluding global price fluctuations and policy, internal inflation was under control, reflecting the stable "health" of the economy./.
VNA
