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.