Retail gasoline prices in Vietnam decreased by VND100-400 ($0.02) a liter on Friday, the first drop after seven consecutive hikes since late April.
The price of RON 95 and E5 RON92 gasoline fell by VND110 and VND410 to VND32,760 and VND30,890 ($1.32) a liter respectively, while diesel oil dipped by VND400 to VND29,610 ($1.27).
Rising fuel and raw material prices drove up Vietnam's consumer price index (CPI) in May by 0.38% against April, according to General Statistics Office. The agency attributed the surging prices to adjustment of domestic gasoline costs in line with the global trend, as well as rising raw material prices due to global supply chain disruption.
CPI in the first six months rose 2.44% on average against the same period last year.
Despite surging oil and raw material prices, Vietnam's inflation may be well under control this year, at 3.7%, below the central bank’s target of 4%, according to HSBC. Singapore's United Overseas Bank (UOB) last week also maintained its forecast of Vietnam’s inflation at 3.7% in 2022.
VinaCapital on Tuesday predicted Vietnam's inflation rate will average at 3.5% this year, with CPI peaking at around 5.5% year-on-year in the second half of 2022, and then falling back to 4.5% by the end of the year.