Just when Vietnam seemed to have inflation sufficiently under control to focus on other pressing economic concerns, the country’s consumer price index rose more than 2% this month and almost 10% compared to a year ago. That’s still far below lasts year’s double-digit inflation, and the final number at year’s end is expected to be in the single digits — but above the 7% target.
Unfortunately, the sharp September rise wasn’t expected. It was fueled by a wide range of increases — in commodities, healthcare, education, transportation, and housing. Health services increased 24% from August and 43% since last September, and the cost of education went up 11%. Hanoi experienced a bigger increase (2.5%) than did Ho Chi Minh City (1.2%).
The government expects inflation will grow more in October, putting more pressure on an economy already reeling because of a banking crisis.
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