Vietnam: Inflation declines in March

Consumer prices declined 0.27% over the previous month in March, according to the General Statistics Office of Vietnam. This contrasted a 0.73% month-on-month increase in February. Looking at a breakdown, nine out of the total 12 sub-components saw a decline in prices, while the remaining three recorded an increase in prices. The category of food and foodstuff registered the biggest drop in prices, whereas the category of medicine and healthcare recorded the biggest increase in prices.

Inflation dropped to 2.7% in March from February’s five-month high of 3.2%, moving away from the Central Bank’s target of 4.0%. Annual average inflation edged down to 3.0% in March from 3.2% in February. Core consumer prices—which excludes rent, electricity, water, fuel and construction materials costs—fell 0.09% over the previous month in March, contrasting a 0.49% month-on-month rise in February. Core inflation, on the other hand, inched up from 1.3% in February to 1.4% in March.

Vietnam Inflation Forecast

The Central Bank projects inflation remaining below 4.0%. FocusEconomics Consensus Forecast panelists expect inflation to average 3.9% in 2018, which is down 0.1 percentage points from last month’s forecast. For 2019, the panel projects inflation to average 4.2%.