Is baking soda and vinegar causing a balloon to expand chemical change?

Yes.

When baking soda (sodium bicarbonate) and vinegar (acetic acid) are mixed, they undergo a chemical reaction to produce carbon dioxide gas. This gas causes the balloon to expand. The chemical equation for this reaction is:

NaHCO3 + CH3COOH → CO2 + H2O + CH3COONa

In this reaction, sodium bicarbonate and acetic acid react to form carbon dioxide gas, water, and sodium acetate. The carbon dioxide gas is what causes the balloon to expand.