Vietnam: Inflation rises in December
Latest reading: Inflation inched up to 2.9% in December from November’s 2.8%, slightly below market expectations and undershooting the government’s 4.5–5.0% target range. Looking at the details of the release, price pressures for education rose at a quicker pace and transport prices fell at a milder pace compared to the previous month. That said, price pressures for food plus housing and utilities eased.
The trend pointed down slightly, with annual average inflation coming in at 3.6% in December (November: 3.7%).
Lastly, consumer prices rose 2.87% in December over the previous month, accelerating from November’s 0.13% rise. December’s uptick was the highest reading since December 2018.
Panelist insight: EIU analysts stated:
“We expect global commodity prices to remain relatively stable in 2025, which will help to contain local inflationary pressures on food and energy. The waning of spillover effects from recent public wage increases will also moderate consumer price growth. […] Another cooling factor for softer inflation in 2025 will be a decline in domestic rice prices, as India has reversed its export ban on the commodity. Rice prices in the country surged in 2024 as domestic traders increasingly preferred to sell in the export market in search of higher prices, hurting domestic supply.”