Inflation in Vietnam is up at an annual rate of almost 18% this month, heightening concerns about whether the government’s need to control prices will dampen or derail the country’s robust growth. The CPI is now at its highest level in more than two years.
The government had hoped to get inflation down to 7% this year after a 12% rise last year. Now that seems unlikely despite recent efforts to tighten the economy as nations across Asia are contending with with high inflation amid strong economic growth.
The government attributes Vietnam’s latest discouraging news to higher education, food and housing prices.