Vietnam’s 2019 CPI seen to hit 3-year low at 2.73% despite soaring pork prices

According to the Ministry of Finance, the inflation rate in 2019 was estimated to increase 2.73%. Main forces for the increase of CPI were the soaring prices of consumer goods including food, catering services, beverages, public transport services, tourism.

In the second half of 2019, prices of pork was under pressure from supply shortage due to the African swine fever.

In the opposite direction, falling in prices of food, oil and gas, telecommunications, sugar contributed to the reduction of inflation rate.

“This could be the second year Vietnam achieved economic growth at above 7%. Macro economy is stable and strengthened. Inflation rate is 2.73%, much lower than GDP growth. This makes economic growth more meaningful,” said Deputy Prime Minister Hue.

The inflation rate in 2019 was the lowest in the 3 recent years. Inflation in 2018 was 3.54% and 2017 was 3.53%.

Early this year, the Government expected 2019 CPI to increase from 3.3-3.9%.

In 2020, the Government expects inflation at below 4%. It is expected that price management could be more challenging next year, but the Government Steering Committee decided to set 2020 inflation target at between 3.59% to 3.91%.