Vietnam: Inflation drops in October
October 29, 2020
Consumer prices increased 0.09% over the previous month in October, coming in below the 0.12% increase recorded in September. Looking at the details of the release, higher prices for education, housing, and beverages and tobacco drove October’s month-on-month increase.
Inflation fell to 2.5% in October, below September’s 3.0%. October's reading marked the lowest inflation rate since May. Annual average inflation was unchanged at September's 3.8% in October.
Looking ahead, our panelists see inflation remaining moderate, although recent extreme weather could push up price pressures in the near term. The State Bank of Vietnam should have room to continue to adopt an accommodative monetary stance and cut rates further if required to support the economy.