Fuel, food push consumer prices up in February

1 min readUpdated Jun 4, 2025Mar 1, 20226:25 AM

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The consumer price index (CPI) was up 1.42 percent year-on-year in February as Tet in early last month pushed up the prices of food, dining, and transportation.

Gasoline prices surged 5.8 percent from January and transport prices increased by 2.35 percent as travel demand skyrocketed during Tet (the Lunar New Year), according to the General Statistics Office.

Food and dining, beverages and cigarettes, and culture-entertainment-tourism prices rose 1.54 percent, 0.73 percent, and 0.51 percent, respectively

Housing and construction material prices also increased due to an increase in prices of inputs such as kerosene, gas, and electricity.

CPI in the first two months have risen by 1.68 percent year-on-year, said the GSO.

Inflation in full-year 2021 was 1.84 percent, the lowest rate since 2016, the office said.

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What this means

The notable 1.42 percent CPI increase, driven by Tet demand for food and transport, presents a challenging environment for retailers. While the article doesn't detail specific company responses, the immediate impact on input costs for housing and construction suggests broader retail cost pressures. Retailers must manage rising logistics and inventory costs, similar to how Odi entered Australia with direct sales, mitigating some supply chain expenses. However, this inflationary surge, especially compared to 2021's low 1.84 percent full-year inflation, directly erodes consumer purchasing power. Retailers in essential categories like groceries may see increased revenue but potentially compressed margins. Watch for subsequent quarterly earnings reports to gauge profit impacts.

Rajiv Menon

Questions & Answers

What was the annual increase in consumer prices reported for February?

The consumer price index (CPI) increased by 1.42 percent year-on-year in February. This rise was largely driven by higher costs for food, dining, and transportation during Tet, the Lunar New Year.

Which specific categories saw significant price increases in February?

Gasoline prices surged by 5.8 percent from January, and transport prices increased by 2.35 percent due to high travel demand. Food and dining, beverages and cigarettes, and culture-entertainment-tourism also saw rises of 1.54%, 0.73%, and 0.51% respectively.

What was the cumulative consumer price increase for the first two months of the year?

The consumer price index for the first two months of the year collectively rose by 1.68 percent year-on-year. This figure reflects the overall trend of increasing prices early in the year.

How does the full-year inflation rate for 2021 compare to previous years?

Inflation for the full year 2021 was 1.84 percent. The General Statistics Office stated that this represented the lowest rate recorded since 2016, indicating a relatively modest increase over the year.

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