Vietnam: Inflation ticks up in July but remains moderate
According to the General Statistics Office of Vietnam, consumer prices rose 0.18% in July over the prior month, contrasting June’s 0.09% decrease. July’s reading was driven by higher prices for food and catering services, and education.
Inflation ticked up from 2.2% in June to 2.4% in July, 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, and as the base effect from low oil prices lessens from Q4 onwards, but should stay on target nonetheless.