Vietnam Inflation December 2021

Vietnam

Vietnam: Inflation decreases in December

December 29, 2021

Consumer prices fell 0.18% from the previous month in December, contrasting the 0.32% rise logged in November. Looking at the details of the release, while prices for food increased in December, prices for transportation and housing both fell after growing in the previous month and healthcare costs grew at a more subdued pace.

Inflation edged down to 1.8% in December, following November’s 2.1% and thus ended the year at its joint-lowest level since march. Meanwhile, annual average inflation rose marginally to 1.8% in December from 1.7% in November.

With a projected pickup in domestic demand penciled in for 2022, inflationary pressures should rise in turn, as consumer spending accelerates and fiscal stimulus remains robust. On the other hand, with the dong set to strengthen slightly in 2022 and monetary policy estimated to tighten throughout the year, price pressures should remain in check, with our panelists forecasting inflation to average below the government’s 4.0% target. The recent outbreaks in Covid-19 cases cloud the inflation outlook considerably, however.

FocusEconomics Consensus Forecast panelists expect inflation to average 3.1% in 2022, which is unchanged from last month’s forecast. For 2023, the panel projects inflation to average 3.3%.


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Vietnam Inflation December 2021

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


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