Vietnam: Inflation stays muted in August
August 29, 2019
According to the General Statistics Office of Vietnam, consumer prices rose 0.28% in August over the prior month, up from July’s 0.18% increase. August’s reading was driven by higher prices for health and education.
Inflation ticked down from 2.4% in July to 2.3% in August, remaining in line with the Central Bank’s target of below 4.0% inflation. Core inflation was stable at 2.0%. Moderate inflation so far this year can largely be attributed to muted oil and food prices.
Looking ahead, inflation is seen rising somewhat from its current level on strong domestic demand, but should stay on target nonetheless.
Author: Oliver Reynolds, Economist