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.
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.”