The petrol price hike, which has led to an increase in nearly all goods and services, from food to medicine to fertilizer, has caused consumers constant anxiety.

The signs of “imported inflation” have appeared as prices of goods purchased from abroad in the first two months of 2022 rose to higher levels compared to the same period last year.

Despite rising commodity prices following the Russia-Ukraine crisis, experts believe that within six months or a year from now, global inflation will cool down.

Oil prices have increased sharply in recent days following the tension between Russia and the West over Ukraine. The high price of oil and fears of an escalation of war have hit commodity and financial markets.

In a recent report, HSBC adjusted its prediction for Vietnam's inflation this year from 2.7 per cent to 3 per cent, a slight increase but with negligible risk as the economy has shown signs of a strong rebound in the making. 

According to several economic experts, this tax reduction is anticipated to help reduce service costs, thereby stimulating consumption, promoting production and business, whilst also creating additional jobs for workers.

Purchasing power is at a very low level, but the potential pressure on prices combined with external factors may make it increasingly difficult for Vietnamese businesses and people in 2022.

Inflation will apparently become one of the key words of 2022.

The severity and persistence of inflation worldwide have surprised most central banks and organizations that offer economic forecasts. 

The world economy is speeding up while Vietnam’s growth is slowing down. Economists believe that the VAT (value added tax) should be reduced to stimulate demand, because it could result in immediate benefits.

Prolonged social distancing measures and restrictions on mobility have put significant pressure on Viet Nam's effort to control inflation in 2022, economists have said.

Vietnam looks to maintain a Consumer Price Index (CPI) growth lower than 1 per cent a month during the last quarter of 2021 in an effort to keep inflation under the 4 per cent target for the year, 

Vietnam’s economic performance in the first five months of 2021 means the country remains on track for solid growth despite two waves of COVID-19 outbreaks, heard a Government meeting on Thursday in Hanoi.

The 2020 Consumer Price Index (CPI) in Vietnam was contained at 3.23%, but which will be difficult to maintain at a target of 4% in 2021.

In a bid to continue successfully controlling inflation this year amid a rise in local consumption, the government is taking drastic action, with the stabilisation of prices of key items in the market a priority.

Input cost inflation is the main concern for the second half of 2021.

Vietnam’s consumer price index (CPI) is set to average 2.89% in 2021, below the government’s target of 4%.

Vietnam’s economy with high level of openness could be susceptible to rising inflation as a result of growing global commodity prices.

Vietnam is likely to meet its target of reining in inflation at a rate of below 4% in 2021, although experts warn that unfavourable factors could impact market fluctuations.

Although many forecasts said that inflation would be controlled at less than four per cent this year, economists recommended it was still important to pay attention to inflationary pressures.