Vietnam Inflation Rate Eases to 4-Month Low

Vietnam’s annual inflation rate eased to 4.69% in June 2026 from 5.60% in the previous month. This marked the lowest reading since February 2025, as price growth moderated in food (4.89% vs 5.03% in May), alcoholic beverages and tobacco (4.21% vs 4.29%), clothing and footwear (2.19% vs 2.37%), housing utilities (7.17% vs 8.19%), transportation (5.29% vs 12.48%), and miscellaneous goods and services (4.08% vs 4.22%). In contrast, costs increased in furnishing and household equipment (3.17% vs 3.12%), health (1.20% vs 1.19%), information and communication (0.13% vs 0.07%), and recreation and culture (3.32% vs 2.91%), while inflation remained steady in education (at 3.39%). On a monthly basis, consumer prices fell 0.39% in May, following a 0.29% gain. Meanwhile, the annual inflation rose by 4.50%, easing from 4.67% in the preceding period.

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.