Vietnam: Inflation hits seven-month high in April
April 29, 2021
Consumer prices fell 0.04% in April over the previous month, a more moderate drop than the 0.27% drop logged in March. The decline was driven by a softer fall in prices for food and education.
Inflation came in at 2.7% in April, which was up from March’s 1.2%. April's reading was the highest inflation rate since September 2020. Annual average inflation was unchanged at March's 1.9% in April.
Looking ahead, our panelists see inflation averaging slightly lower this year than in 2020 and well below the State Bank of Vietnam’s 4.0% target. As such, the Bank should continue to have room to adopt an accommodative monetary stance and cut rates further if required to support the economy.
Author: Stephen Vogado, Economist