Vietnam Inflation Rate Rises to 5.6% in May

Vietnam’s annual inflation rate increased to 5.60% in May 2026 from 5.46% in the previous month. This was the highest reading since January 2020, driven primarily by faster price growth in transport (12.48% vs 11.08% in April), reflecting elevated energy costs linked to ongoing conflict in the Middle East. Additional upward pressure came from housing and construction materials (8.19% vs 7.95%), culture, entertainment and tourism (2.91% vs 2.71%), garments, hats and footwear (2.37% vs 2.29%), beverages and tobacco (4.29% vs 4.21%), and healthcare services (1.19% vs 1.11%). In contrast, inflation eased for food (5.03% vs 5.20%), information and communication (0.07% vs 0.24%), and other goods and services (4.22% vs 4.52%). On a monthly basis, the CPI advanced 0.29%, the smallest rise in four months, slowing from a 0.84% increase in April. Annual core inflation was largely unchanged at 4.67% in May compared with 4.66% in April, remaining at its highest level since March 2023.

Vietnam’s central bank will maintain its 2026 inflation target at 4.5% even as price pressures from the Iran war mount, Governor Pham Duc An said in an interview. Inflation rose 5.46% yoy in April, driven by an 11.1% surge in transport costs. Duc An noted that the global economic landscape remains “complex and unpredictable,” with geopolitical tensions complicating policy stance. The State Bank pledged to support production and business activity to help meet the government’s goal of double-digit growth over the next five years. Monetary policy will be managed flexibly, coordinated with fiscal measures to balance growth and stability. Further, authorities will rely on open market operations to ensure liquidity, steer credit toward productive sectors, and restrict lending to riskier areas. The board will also monitor market conditions closely, adjusting rates as needed while maintaining a balance between credit expansion and capital mobilisation.

Vietnam’s annual inflation rate accelerated to 5.46% in April 2026 from 4.65% in March, marking the highest level since January 2020, driven by higher domestic gas prices in line with rising global oil prices. Upward price pressures were broad-based across most components, including food (5.20% vs 4.72% in March); beverages and tobacco (4.21% vs 3.44%); clothing, hats, and footwear (2.29% vs 1.82%); housing, electricity, water, fuel, and building materials (7.95% vs 5.88%); household equipment and goods (3.14% vs 2.44%); healthcare (1.11% vs 1.00%); transport (11.08% vs 10.81%); education (3.37% vs 3.30%); culture, entertainment, and tourism (2.71% vs 2.07%); and other goods and services (4.52% vs 4.01%). Meanwhile, the cost of communication rebounded (0.24% vs -0.07%). Core inflation rose to 4.66% in April from 3.96% previously. Core inflation accelerated to 4.66% in April, marking the fastest pace since March 2023. Monthly, CPI rose 0.84%, easing from a 1.23% rise in March.