Vietnam: Inflation drops to an over two-year low
Latest reading: Consumer prices increased 2.5% in annual terms in January, following a 3.5% rise in the previous month. January’s reading was the weakest since July 2023 and was influenced by the timing of the Lunar New Year holidays.
Relative to the previous month’s data, there were reduced price pressures for food (+3.9% in annual terms vs +4.8% in December) and transportation (-5.4% vs -2.3% in December). In contrast, there were more notable price pressures for education (+9.8% vs +9.7% in December) and housing and construction materials (+4.3% vs +4.0% in December).
Lastly, consumer prices were up 0.05% in January on a month-on-month basis, following a 0.19% rise in the previous month.
Panelist insight: Commenting on the near-term outlook, Emerging Market Watch analysts stated:
“Looking ahead, inflationary pressures are expected to rise in the near term as Lunar New Year demand peaks, while supportive monetary and fiscal conditions continue to underpin domestic activity.”