March 2026 CPI rises to five-year high, pressured by fuel and transport costs.

Vietnam’s consumer price index (CPI) rose to a five-year high in March 2026, driven largely by higher domestic fuel prices that moved in line with global trends. Data released on April 4 by the Statistics Office under the Ministry of Finance showed that CPI increased 1.23% month-on-month and 4.65% year-on-year in March, the highest March CPI increase in five years.

March CPI accelerates on transport and fuel costs

In March, 9 of 11 groups of goods and services increased, while the remaining two groups declined. The largest contribution came from transport, which rose 12.85% and added 1.28 percentage points to the overall CPI—the biggest among all groups.

The Statistics Office attributed the main cause to geopolitical tensions in the Middle East disrupting global supply chains. As a result, domestic diesel prices rose 57.03% and petrol prices increased 29.72%. Higher fuel costs then fed into transport services, including airfares up 23.19% and rail transport up 13.92%.

Housing, food and holiday effects

Housing and construction materials increased 0.77%, reflecting input costs and higher fuel expenses. By contrast, after the Tet holiday, demand cooled, pulling the food and dining-out group down 0.59%, which helped limit the overall CPI rise.

Q1 2026 inflation: housing leads, food also rises

For the first quarter of 2026, the average CPI rose 3.51% year-on-year. Housing and construction materials rose the most at 5.69%, contributing 1.29 percentage points to CPI. The food and dining services group increased 4.55%, driven by higher pork prices and eating-out costs during the holidays.

Core inflation edges higher

Core inflation in March rose 0.47% from February and 3.96% year-on-year. For Q1 2026, core inflation averaged 3.63%, higher than the overall CPI of 3.51%. The report said this was mainly because food factors that normally reduce CPI are not included in the core inflation basket.

On the downside, information and communications prices fell 0.20%, supported by abundant technology devices and intense distributor competition, helping stabilize price levels.

Gold and USD developments

The report also highlighted movements in gold and foreign exchange markets. Internationally, gold prices as of March 28 fell 2.27% month-on-month to an average of $4,909.01 per ounce, as investors took profits and funds shifted to the US dollar.

In Vietnam, however, the gold price index rose 1.54% versus February and surged 82.77% year-on-year, driven by sentiment and price adjustments by gold traders.

In the free market, the USD traded around 26,315 VND/USD. The US Federal Reserve kept interest rates at 3.5%–3.75%. With demand for safe assets amid Middle East geopolitical risk, the USD price index increased 0.72% month-on-month and 2.58% in the first quarter of 2026.