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Vietnam's Inflation Accelerates to 5.6% in May on Higher Utility, Fuel Costs
Vietnam's consumer price index rose 5.6% in May from a year earlier, according to data released by the National Statistics Office on Wednesday.Housing, electricity, water, fuel, and construction materials recorded the largest monthly increase among major categories, rising 0.96% from April.The quickening of inflation was "due to rising electricity and water prices, coupled with high demand during hot weather, as well as increases in construction material prices, rental housing prices, and gasoline prices," the statistics office said in a statement.Core inflation, which excludes volatile items, increased 4.67% from a year earlier.For the first five months of 2026, consumer prices increased 4.31% from a year earlier, while average core inflation rose 4.04%.The inflation pickup comes as higher global energy prices linked to the conflict in Iran continue to filter through transportation, services, and construction-related costs.Vietnam's Finance Ministry said in April that inflation could reach as high as 5.5% this year, with the conflict in Iran expected to be a key driver of higher consumer prices through its impact on energy and transportation costs.The outlook has also been clouded by mounting trade tensions with the United States. In late May, Washington launched a new investigation into Vietnam's intellectual property protection and enforcement practices, the third U.S. trade probe targeting the country in as many months.The investigation could pave the way for additional tariffs on Vietnamese exports, adding pressure on the export-dependent economy.Vietnam's Foreign Ministry said it hoped the U.S. would conduct an "objective and fair assessment" that fully recognizes Vietnam's efforts and achievements, according to a statementMeanwhile, Vietnam's trade deficit widened to a record $5.21 billion in May as imports surged amid rising global raw material prices and stronger demand for production inputs.
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