Hanoi CPI up 5.3% y/y in February thanks to Tet festival

Hanoi's consumer price index (CPI) rose 5.28% year-on-year in February, according to the Hanoi Statistics Office.

The CPI rose 1.01% from January 2024, 1.33% from December 2023, and 5.28% year-on-year.

Shoppers at AEON Mall Long Bien in Hanoi's Long Bien district. Photo: Vietnam News Agency

In February, a total of VND37.5 trillion (US$1.5 billion) worth of goods were sold in Hanoi. Prices in 10 out of 11 sectors in Hanoi rose month-on-month, including transport, housing, electricity, water, beverages and cigarettes, clothing and footwear, household appliances, medical and healthcare, and education.

According to the statistics office, the Tet (Lunar New Year) festival in 2024 pushed up purchasing power for food and beverages by 1.77%, while the post-festival period saw an increase in demand for travel, entertainment and cultural experiences, driving up the CPI.

During the Tet holiday, which runs from mid-January to mid-February, total commercial sales in Hanoi rose 7% year-on-year. Sales through online channels accounted for 7-10% of total retail transactions, and online orders increased by 15% inter-monthly.

In addition, 50-60% of customers in large stores opted for cashless payment, compared to 30-40% in smaller stores.

In February, e-commerce platforms saw a 15-20% increase in orders for gift parcels and a 50% increase in orders for home decor and food compared to the previous month.

In the local markets during the pre-Tet period, imports of fresh food increased by 20% compared to previous weeks, and the number of shoppers jumped by 30-35% compared to normal days, while prices remained stable.

According to Tran Thi Phuong Lan, Acting Director of the Hanoi Industry and Trade Department, local producers had prepared to meet the rising consumption three months before the 2024 Tet holidays.

All companies had sold their products on multiple platforms, such as social media, e-commerce websites and offline channels, and had connected with intermediaries to attract more customers.

After the festival, local businesses ensured that there was a sufficient supply of goods for the market. Most supermarkets and convenience stores opened immediately after the festival, offering shoppers a variety of goods and price stability with many promotions and discounts.

In the first two months of the year, Hanoi’s CPI grew by 5% year-on-year, with prices rising in eight out of 11 sectors, such as education (38.33%), housing and utilities (5.24%), food and beverages (2.92%) and transport (1.54%).

The average gold price index in January-February 2024 was up 18.24% year-on-year, and the US dollar price index was up 3.74% over the same period.