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What's worth mentioning about the Government's inflation target below 4.5%?

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Macroeconomics

The Consumer Price Index (CPI) for the average consumer in Vietnam has increased by 3.1% year-on-year from January to August, as reported by the General Statistics Office (GSO). The rise in prices for fuel, rice, and housing services contributed to this increase. However, the CPI growth rate has decreased over the months, which is a good sign for Vietnam's efforts to control inflation. The target for inflation control in 2023 is below 4.5%.


Despite the Government's efforts, local economists have mentioned that inflation control in Vietnam is facing several challenges. Certain authorities have and will modify the costs of certain goods managed by the state based on a previouslyestablished plan. For example, the minimum wage will increase by 20.8% starting on July 1st, 2023, textbook prices will be adjusted under the updated educational program, and electricity prices may continue to rise to stabilize the finances of the Vietnam Electricity Group. These actions are likely to ripple effect, causing the consumer price index to grow through multiple rounds of influence.


Furthermore, crude oil prices have been rising sharply worldwide, causing concerns about its impact on the world economy. Many countries are already grappling with high inflation, and enterprises across various industries may experience rising operational expenses, affecting profit margins and potentially leading to job cuts.


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#Vietnam#Macroeconomy#CPI#Government#PotentialIndustries#InvestmentOpportunity#M&A #Fundraising

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