Vietnam inflation hits 5.6% in May, broadens beyond energy

Created at 7 Jun · 12:38 UTC1 source↑ Market-relevant

IN SHORT

Vietnam's consumer price index (CPI) accelerated to a post-2020 high of 5.60% year-over-year in May, marking the third consecutive monthly increase. Housing, food, energy, and transport costs are the primary drivers, with services inflation remaining entrenched and core inflation straining the full-year target.

Key Numbers

5.60%year-over-year CPI increase in May

2020year of previous comparable inflation high

Who's Involved

Vietnam

country experiencing accelerated inflation

↳ Why This Matters

The sustained rise in inflation, particularly its broadening beyond energy costs and the persistence of core inflation, could prompt the State Bank of Vietnam to consider tighter monetary policy, potentially impacting economic growth and investment.

Key facts

Vietnam's CPI rose to 5.60% year-over-year in May.
This is the third consecutive monthly acceleration in inflation.
Housing, food, energy, and transport are key contributors to the inflation.
Services inflation remains entrenched.
Elevated core inflation strains the full-year inflation target.

Vietnam's consumer price index (CPI) saw a significant acceleration in May, reaching 5.60% year-over-year. This figure represents a post-2020 high and the third consecutive month of increasing inflation. The primary drivers of this rise include costs associated with housing, food, energy, and transportation. Notably, inflation in the services sector remains persistently high. The elevated core inflation further exacerbates concerns, placing the government's full-year inflation target under considerable strain.

FREQUENTLY ASKED

Vietnam's consumer price index (CPI) rose to 5.60% year-over-year in May.

The primary contributors to inflation are housing, food, energy, and transport costs. Services inflation also remains entrenched.

The current elevated inflation, particularly core inflation, is placing the full-year inflation target under increasing strain.

What Happens Next

Key facts

Vietnam's CPI rose to 5.60% year-over-year in May.

This is the third consecutive monthly acceleration in inflation.

Housing, food, energy, and transport are key contributors to the inflation.

Services inflation remains entrenched.

Elevated core inflation strains the full-year inflation target.

Vietnam inflation hits 5.6% in May, broadens beyond energy

PiQ Daily

Key facts

Vietnam inflation hits 5.6% in May, broadens beyond energy

PiQ Daily

Key facts

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