Inflation Accelerates in Vietnam in April as Trade Deficit Widens

Consumer prices in Vietnam rose 5.46% in April compared with a year earlier, accelerating from 4.65% in March, government data showed on Sunday, driven by higher energy costs linked to the conflict with Iran.

The National Bureau of Statistics said the increase was “driven by higher domestic gas prices in line with global fuel prices”, adding that rising material and transport costs were also pushing up prices in services and construction.

Exports rose 21% year-on-year to $45.52bn in April, while imports increased 32.5% to $48.8bn. The trade deficit widened to $3.28bn, compared with $677m in February and $2.6bn in March, the statistics office said.

Vietnam’s Ministry of Finance said inflation could reach 5.5% this year, exceeding the government’s 4.5% target, mainly due to the impact of the conflict with Iran.

(reuters, su)