Money contributes 50pct to the country’s inflation: GSO

The direct cause of the country’s inflation is the imbalance of money – goods. Once the money supply exceeds the goods supply, inflation is likely to occur. The evidence is that the total money supply has always increased higher than the country’s GDP (gross domestic product) growth rate since 2007 so far, Do Thuc, director of General Statistics Office (GSO) said.
At the press conference of GSO on December 29, Mr Nguyen Bich Lam (deputy director of GSO) said averagely, money contributed about 50% to the country’s inflation.

Representative of Trade Statistics -Services and Price Department also said the prices of fuel and electricity have contributed to the country’s consumer price index (CPI) increase by 1.7%.

According to GSO, Vietnam’s average CPI this year increased 18.58% while the GDP growth for the full year 2011 increased 5.89% from 2010. Both figures are lower than the targeted figures.

However, according to GSO, in the difficult situation that Vietnam still kept the GDP growth rate and tamed inflation at such figures, which showed a major effort of the Government. – Vietbiz24

Tags: Vietnam economic, Vietnam economic growth, Vietnam economy, Vietnam economy 2011, Vietnam inflation, Vietnam inflation 2011

Posted by VBN on Jan 2 2012. Filed under Economy News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry