ANZ: Vietnam's inflation fell to just 1.7% in 2015.

ANZ Bank lowered its inflation forecast for Vietnam to 1.7%, while maintaining its GDP growth forecast at 6.5%.

In its recent regional economic outlook report, ANZ stated that Vietnam's domestic economy continues to accelerate, domestic consumption is improving, and this will support the economic recovery in 2015 and 2016.

Specifically, the Vietnamese consumer sentiment index compiled by ANZ-Roy Morgan remained at 140.2 points in May, higher than the average of 133.3 points in 2014.

ANZ lowered its inflation forecast for Vietnam to 1.7% from the previous 2%.

Car sales, an indicator of household spending, also surged in the early months of the year. By the end of April, car sales had increased 64% year-on-year.

Another indicator of domestic consumption is that retail sales in the first five months of the year increased by 8.45%, compared to a 5.8% increase in the same period last year.

With these signals, ANZ maintained its GDP growth forecast for Vietnam at 6.5% for 2015. However, the bank lowered its inflation forecast for Vietnam to 1.7% from the previous 2%.

ANZ estimates core inflation in May rose 2.47% year-on-year, remaining higher than the overall inflation rate recorded since November 2014. Accordingly, the bank predicts that continued improvement in domestic demand will reinforce the upward trend in core inflation.

For 2016, ANZ lowered its inflation forecast to 3.5% from the previous 3.9%.

According toVOV.VN