Ho Chi Minh City’s consumer price index (CPI) in January rose by 1.27 percent over the previous month, according to the city’s Statistics Office.
The index was up 9.05 percent over the same period last year.
The increase has been put down to the approaching traditional New Year Tet.
Increases can be seen in the prices of foods and restaurants services up 1.97 percent followed by housing, electricity, water, fuel and building materials, 1.9 percent.
Beverages and tobacco increased by 1.32 percent, while post and telecommunications dropped by 0.26 percent.
The price of food and foodstuffs rose sharply, with rice up 5.54 percent, grain 1.86 percent and processed foods 1.21 percent. The price of processed meat has risen by 1.67 percent; eggs up 3.06 percent; fresh seafood 2.39 percent; beans up 5.61 percent; sugar up 7.8 percent and milk and butter 2.88 percent.
The increase in the price of sugar, milk, eggs and beans is due to an increasing demand for materials to make biscuits, cakes, sweets and preserved fruit for Tet, which begins on Feb. 13.
Experts forecast that the price of tobacco and beverages, especially imported wines and whiskies, would rise sharply in the days running up to Tet.
The prices of electronic appliances, vehicles and services have not yet seen any large fluctuations. However, the prices of some of household appliances, including cookers, have seen a slight decrease due to large supplies and fierce competition between enterprises.