The Consumer Price Index (CPI) in Vietnam recorded a surprising decrease of 0.12% in July compared to the previous month, largely driven by falling fuel prices and a reduction in certain food items. According to a report from the General Statistics Office, the CPI increased by 4.45% compared to the same month last year and rose by 3.08% since December 2025.

For the first seven months of the year, the average CPI increased by 4.39%, while core inflation rose by 4.19%. Among the 11 main groups of goods and services, three categories saw price declines, while eight experienced increases. Notably, the transportation sector saw the most significant drop at 2.02%, contributing to an overall CPI reduction of approximately 0.2 percentage points. This decline was primarily due to a 4.35% decrease in gasoline prices and a 9.18% drop in diesel prices, reflecting adjustments in line with global fuel market trends.

Additionally, the food and dining services sector decreased by 0.07%, attributed to an abundant supply of food products. The housing, electricity, water, gas, and building materials category also saw a reduction of 0.07%, with gas prices falling by over 11%. Conversely, some categories recorded price increases, with other goods and services rising by 1.96%, mainly due to higher health insurance costs linked to new base salary levels. The culture, entertainment, and tourism sector increased by 0.52%, driven by summer travel demand, while the education sector rose by 0.24% due to tuition adjustments at some institutions.

Over the past seven months, the pricing landscape has been influenced by various input cost factors. The housing, electricity, water, gas, and building materials category increased by 6.72% compared to the same period last year, making the largest contribution to the overall CPI rise. The food and dining services sector grew by 4.77%, while transportation costs rose by 5.01%, primarily due to average fuel prices remaining higher than in the previous year.

Representatives from the General Statistics Office noted that the CPI trends in 2026 differ from previous years, with peak increases occurring in May followed by gradual declines in subsequent months. The trends observed in June and July indicate a cooling of the price index as fuel prices significantly decreased. In addition to the CPI, notable fluctuations were also seen in gold and USD prices in July. Domestic gold prices fell by 3.02% compared to the previous month, mirroring global market trends as the USD remained high and investors leaned towards profit-taking. Meanwhile, the domestic USD price index saw a slight increase of 0.18% compared to the previous month, reflecting the upward trend of the greenback in international markets amid the Federal Reserve's cautious monetary policy.

The decline in the CPI for July highlights the clear impact of fuel prices on the overall pricing landscape. However, inflationary pressures remain evident as many essential goods continue to be affected by input costs and recovering consumer demand.