Vietnam: Inflation reaches multi-year high in January
January 29, 2020
According to the General Statistics Office of Vietnam, consumer prices rose 1.23% in January over the prior month, down from December’s 1.40% increase. January’s figure was driven by markedly higher food prices, likely linked to both African swine fever hitting the pig population and Lunar New Year celebrations boosting demand.
Inflation increased from 5.2% in December to 6.4% in January, the highest rate in over six years, while core inflation increased from 2.8% to 3.3%.
Inflation should fall as the year progresses, as temporary factors which have fanned inflation recently fade. However, strong domestic demand will continue to provide upward pressure.
Author: Oliver Reynolds, Economist