CPI for Q1 2026 rose 3.51% year-on-year, while core inflation increased 3.63% year-on-year, according to the General Statistics Office. In March 2026, CPI rose 1.23% month-on-month, driven by higher domestic fuel prices and construction material costs.
March 2026: CPI up 1.23% month-on-month
The General Statistics Office said March CPI increased 1.23% month-on-month due to higher domestic fuel prices following global fuel prices, alongside higher construction material prices linked to increased input and transportation costs.
Compared with December 2025, March CPI rose 2.44%. It was also 4.65% higher than the same period last year, marking the highest March-on-year CPI increase in five years.
For Q1 2026, CPI rose 3.51% year-on-year, while core inflation rose 3.63%.
Price movements by group in March
Among the 1.23% CPI increase in March 2026 versus the previous month, nine groups recorded price increases and two groups saw price declines.
Groups with price increases
- Transport: up 12.85% (contributing 1.28 percentage points). Mainly driven by fuel price increases: gasoline up 29.72% and diesel up 57.03% amid Middle East tensions. Public transport prices rose, including air passenger transport (+23.19%), rail (+13.92%), water transport (+6.51%), road transport (+4.32%), bus (+2.38%), taxi (+1.77%), and luggage handling and storage (+1.43%). Maintenance of transport equipment rose 0.72% (motorcycle repair +0.71%; bicycle repair +0.81%). Vehicle parts increased 0.65%, with tires up 0.71%.
- Housing, electricity, gas, and building materials: up 0.77% (contributing 0.17 percentage points). Kerosene rose 62.35% and gas rose 5.56%. Maintenance materials increased 1.58%, home repair services rose 1.20%, and housing rents increased 0.94%. Environmental cleaning services rose 0.32%. Electricity for domestic use rose 0.24% and water services rose 0.13%. Electricity and water prices fell 0.39% and 0.15%, respectively, due to lower consumption.
- Health and medical services: up 0.38% (contributing 0.02 percentage points). Health service prices rose 0.33% after some localities implemented new price levels for medical services under Government Resolution No. 335/NQ-CP (October 17, 2025). Medicines rose 0.49% due to higher costs for drug ingredients and distribution. Sub-items included analgesics (+0.72%), anti-allergic medicines (+0.68%), hormones and endocrinology drugs (+0.47%), anti-infectives and antiparasitics (+0.40%), and cardiovascular drugs (+0.39%).
- Beverages and tobacco: up 0.37% due to higher US dollar prices and input costs. Fruit juice rose 1.15% and tobacco rose 0.88%. Energy drinks (bottled/canned) increased 0.82%. Alcoholic beverages fell 0.03%.
- Household appliances and ordinary goods: up 0.33%. Glassware and ceramics rose 0.61%, repair of household appliances increased 0.55%, and air conditioning rose 0.45%. Soap and detergents rose 0.43%, electric fans rose 0.37%, and refrigerators rose 0.25%. Beds, cabinets, and tables rose 0.13%. Domestic help services fell 1.23%, electric pots fell 0.77%, and microwaves/ovens fell 0.76%.
- Information and communications: up 0.18%. Computers and accessories rose 0.72%, audio equipment increased 0.54%, mobile phone repair rose 0.42%, and television and internet services rose 0.36%. Regular mobile phones fell 0.73%, color televisions fell 0.10%, and landlines fell 0.06%.
- Other goods and services: up 0.13%. Jewelry rose 3.33% driven by domestic gold prices. Watch and jewelry repairs increased 1.15%, personal care rose 0.73%, and wedding-related services rose 0.43%. Personal services fell 0.40%, and health insurance fell 0.34% as some provinces adjust health insurance subsidies.
- Education: up 0.10%. Education services rose 0.09% due to tutoring centers and extracurricular and vocational schools adjusting tuition. Pens/paper products rose 0.30% and office supplies and other school materials increased 0.15%.
- Apparel, headwear, and footwear: up 0.01%. Footwear services rose 0.89%, tailoring rose 0.52%, other clothing rose 0.45%, and headwear rose 0.34% due to higher input costs. Ready-made clothing and footwear prices fell 0.04% due to weaker demand.
Groups with price declines
- Culture, entertainment, and travel: down 0.05%. Plants and flowers fell 3.01% due to post-Tet demand. Cameras fell 0.23%, sports equipment fell 0.15%, and hotels and guesthouses fell 0.13%. Offsetting increases included all-inclusive travel packages (+0.81%, with outbound +1.36% and domestic +0.72%), photo printing and enlarging (+0.93%), children’s toys (+0.90%), and pet-related services (+0.65%).
- Food and non-alcoholic beverages: down 0.59% (contributing -0.21 percentage points). Food prices fell 1.41% while staples rose. Meals outside the home increased 1.17%.
Q1 2026 CPI: 3.51% year-on-year
The average CPI for Q1 2026 rose 3.51% year-on-year. By category, housing and utilities increased 5.69%, food and dining services rose 4.55%, and goods and other services rose 3.68%. Education rose 3.21%, beverages and tobacco increased 2.80%, and household equipment rose 2.13%. Culture, entertainment and travel rose 1.83%, apparel increased 1.63%, and transport rose 1.07%. Health care and medicines rose 0.89%, while information and communication decreased 0.20%.
Core inflation: 0.47% month-on-month in March
Core inflation in March 2026 rose 0.47% month-on-month and 3.96% year-on-year. On a quarterly basis, core inflation in Q1 2026 rose 3.63% year-on-year, higher than the 3.51% increase in overall CPI. The article attributes the difference mainly to the fact that food items are excluded from core inflation calculations, even though food prices depressed the overall CPI.
Notes: Comments and data from Vietstock and FILI are cited in the article.
