Vietnam: Inflation eases to lowest level in over four years
February 25, 2014
In February, consumer prices rose 0.55% over the previous month, which was below the 0.69% rise recorded in January. According to the General Statistics Office of Vietnam, February's price rise was broad-based, with nine of the eleven categories that make up the index registering increases. The largest upsurge in prices was seen in food and catering as well as in transport.
Annual inflation eased from 5.5% in January to 4.7% in February, which marked the lowest level since November 2009. As a result, inflation remains below the Central Bank's target range of between 6.0% and 6.5%. Annual average inflation edged down from 6.5% in January to 6.3% in February.
FocusEconomics Consensus Forecast panelists expect headline inflation to average 7.4% in 2014, which is up 0.1 percentage points from last month's forecast. According to the panel, average inflation should accelerate to 7.8% in 2015.
Author: Dirina Mançellari, Senior Economist