Vietnam consumer prices predicted to continue downward trend in March
Food and medical items are seen as major factors driving up inflation rate in March.
Food and medical items are seen as major factors driving up inflation rate in March.
Using monetary policy to stimulate demand in the case of Vietnam could cause inflation, said an economist.
Vietnam’s consumer price index (CPI) growth in February is predicted to drop to 0.46% month-on-month and 5.10% year-on-year.
The mining industry’s output decreased by 18.2% month-on-month and 32.1% year-on-year, while the manufacturing and processing industry declined by 25.4% and 15.4%, respectively.
Higher inflationary pressure, unstable crude oil and gas prices from geopolitical tension and the ongoing US – China trade war are among major risks to Vietnam’s economy this year.
As of December 2019, the nation’s hog herd shrank by 25.5% year-on-year due to the impact of African swine fever.
The consumer price index (CPI) saw an increase of 1.4% in December against the previous month, the highest growth rate for December over the last nine years.
A major proportion of bank loans are provided for the business community, particularly the private sector and individuals.
Vietnam’s inflation in 2020 is forecast to hit 3.5%, higher than the government’s estimated 3.17 – 3.41% in 2019, while the pressure will build up right at the beginning of next year.
The CPI increased 2.57% year-on-year in the first eleven months of 2019, the lowest growth rate for a eleven-month period over the last three years.