Vietnam: Inflation gains traction in August
August 29, 2017
Consumer prices rose 0.92% from the previous month in August (July: +0.11% month-on-month). According to the General Statistics Office of Vietnam, higher prices for food and foodstuff, medicine and healthcare, and traffic all contributed to this reading, the highest month-on-month rise in consumer prices since September 2013.
Inflation therefore gained traction in August, coming in at 3.4%, up from the 2.5% recorded in July. Average annual inflation also ticked up from 3.9% in July to reach 4.0% in August, which, if maintained until the end of 2017, would match the Central Bank’s annual average inflation target of 4.0% for 2017.
Core consumer prices, which exclude food items, energy products and commodities, increased 0.10% month-on-month in August, almost matching the 0.11% reading of the previous month. Meanwhile, core inflation stood unchanged at 1.3%.
Author: Edward Gardner, Economist