Vietnam’s May inflation rate seen 0.03% lower from previous month

However, the May CPI rose by 2.4 percent year on year, GSO said. The average CPI in the first five months of this year also increased by 4.39 percent over the same period last year, the highest rate over the past three years.

Four out of the 11 groups of commodities and services used to calculate the CPI had a price decline in May, contributing to the 0.03% drop. Of them, the transport group had the strongest decline in price with 2.21 percent due to the price adjustment of petroleum products.

The domestic petrol and gas prices had a strong reduction at 4.98 percent in May as the average Brent oil price in the month remained low.

According to the GSO data, core inflation in May decreased by 0.03 percent month on month but increased by 2.54 percent year on year. The five-month core inflation climbed by 2.88 percent from the same period of 2019.

Despite crisis, the government is striving to keep 2020 CPI target at below 4%. The government, ministries, branches, and localities have simultaneously implemented policies to support businesses and people facing difficulties due to the Covid-19 pandemic.

The Ministry of Industry and Trade – Finance and the State Bank of Vietnam had initiatives in controlling prices by reducing interest rates and implementing flexible and proactive monetary policy.

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