Vietnam: Inflation falls to over one-year low in September
Latest reading: Inflation eased to 2.6% in September from August’s 3.5%. September’s reading marked the weakest inflation rate since July 2023 and undershot market expectations. The deceleration was primarily due to a sharper drop in transportation costs and weaker price pressures for both education and housing and construction materials, which outweighed the impact of increased price pressures for food.
Meanwhile, the trend pointed down slightly, as annual average inflation eased to 3.8% in September (August: 3.9%).
Lastly, consumer prices increased 0.28% in September over the previous month, rising from August’s flat result.
Outlook: Our panelists forecast inflation to remain below the government’s 4.0%–4.5% target range until year-end. Inflation is projected to ease in 2025, partly due to the lifting of India’s rice export ban, which will help curb food inflation.