Vietnam: Inflation continues to decline in March
Consumer prices fell 0.72% month-on-month in March, down from February’s 0.17% decline. March’s fall was driven by lower prices for oil and fuel, and culture and recreation, as Covid-19 hit demand.
Inflation declined from 5.4% in February to 4.9% in March but remained elevated by recent standards, likely influenced by the impact of African swine fever on pork prices. Core inflation rose from 2.9% to 3.0%.
Inflation should continue to fall this year due to soft demand and low oil prices, notwithstanding some Covid-19 induced supply disruptions.