The consumer price index (CPI) in the first two months of this year picked up by 3.67% versus the same period last year, according to the General Statistics Office. It is below the 4.6% recorded in January-February in 2023. Looking more closely at the factors behind inflation in January-February this year, food prices made a significant contribution as they surged by 16.49% year-on-year. The persistently high food prices may continue to drive inflation higher in the near future. Higher food prices drive inflation In the year to end-February, the CPI inched up by 3.67% over the same period last year while core inflation increased by 2.72%. In the first two months last year, the CPI rose by a sharp 4.6% and core inflation picked up by 5.08%, exceeding headline inflation. Thus, core inflation in early 2024 was significantly lower than in the previous year, and the impact from monetary factors on the CPI was also milder. However, despite the recently announced CPI showing a lower increase than in the same period last year, when scrutinizing the commodities in the CPI basket, there is still concern about a return of high inflation this year. Specifically, in the CPI structure, food prices […]