Vietnam Inflation Hits 5.08% Exceeding Government Target
Vietnam's annual inflation rose to 5.08% in September, prompting the State Bank of Vietnam to implement flexible monetary policies to control prices.
Annual inflation in Vietnam rose to 5.08% in September, surpassing the government's full-year target of 4.5%. Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam, noted that this represents the highest reading in several years, though he maintained that prices remain under control.
Officials attributed the price surge to global pressures, specifically interest rate hikes by the Federal Reserve System and increased imported fuel costs resulting from the war in Iran. In response, the State Bank of Vietnam will employ a flexible monetary policy for the rest of the year to balance inflation control with economic growth. This strategy includes increasing lending for manufacturing and business while restricting loans to risky sectors.
Economic growth remains a priority as Vietnam reported a third-quarter GDP growth of 9.95%. To achieve the annual growth target of 10%, the country must see fourth-quarter growth exceed 12%.
