Vietnam: Inflation decelerates in February
Inflation came in at 4.3% in February, which was down from January’s 4.9%. February’s result marked the weakest inflation rate since October 2022 and was below the State Bank of Vietnam’s 4.5% average inflation target for 2023. Looking at the details of the release, prices for food and education rose at a slower pace in February and prices for transportation dropped after growing in the previous month.
Annual average inflation edged up to 3.6% in February (January: 3.4%).
Finally, consumer prices increased 0.45% from the previous month in February, moderating from January’s 0.52% rise.
Giving their view on the outlook, analysts at the EIU commented:
“Consumer price inflation will begin to ease in the second quarter of 2023, from a peak of about 5% in the first three months of the year. A more rapid deceleration will take hold in the second half of 2023 as declining global energy prices translate into easing cost-push pressures across a range of goods and services, while a higher base of comparison from the year-earlier period will also come into play.”