
Inflation Moderates on Transportation Pullback
Inflation Moderates on Transportation Pullback
Vietnam headline CPI rose 3.19% y/y (vs 3.57% in Jun-25) (+0.11% m/m) with m/m deflationary pressures from transportation sub-index. 7M25 CPI averaged 3.26%, well below SBV’s 4.5-5.0% target. For Aug-25, we expect inflation to rise 3.34% y/y (vs. 3.19% y/y in Jul-25) due to larger contributions from the housing & construction materials sub-index. We maintain our FY25 inflation forecast at 3.4% on expected softness in transportation and food & foodstuff sub-indexes.