Vietnam Inflation May 2022

Vietnam

Vietnam: Inflation comes in at highest level since May 2021 in May

May 29, 2022

Consumer prices increased 0.38% over the previous month in May, picking up from April's 0.18% rise. The acceleration was largely driven by rising prices for food. In addition, price pressures for transportation intensified.

Inflation rose to 2.9% in May, above April’s 2.6%. May's reading was the highest inflation rate since May 2021. Meanwhile, annual average inflation was unchanged at April's 2.2% in May.

Price pressures are likely to persist throughout the year, as private consumption and investment accelerate. Moreover, the rising prices of key commodities on global markets—especially oil and agricultural products—will boost inflation as well. Nevertheless, forecasts for interest rate hikes by Vietnam’s Central Bank and the anticipated slight appreciation of the dong should offset this somewhat, and our panelists forecast average inflation to end the year well below the government’s 4.0% target.

FocusEconomics Consensus Forecast panelists expect inflation to average 3.7% in 2022, which is up 0.3 percentage points from last month’s forecast, and 3.7% in 2023.


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Vietnam Inflation May 2022 1

Note: Annual and monthly variation of consumer prices index in %.
Source: General Statistics Office of Vietnam (GSO) and FocusEconomics calculations.


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