Vietnam inflation forecast at 18.98% in 2011: economics committee

Vietnam’s inflation is expected to increase to 18.98% in 2011, sending Vietnam to be one of the four highest inflation countries in the world, the Vietnam Economics Committee said in its No.5 macro-economy report sent to the NA.

The country’s inflation is believed to have peaked in August at 23.02% and slowed down to 22.42% in September, and 21.59% in October.

Inflation may face pressure through the end of the year on rising demand prior to traditional New year holiday, rising dollar prices, and electricity price hikes, wage increase, unstable gold prices.

Therefore, it is hard to achieve the government’s target of curbing inflation under 18% in 2011, the Economics Committee mentioned.

Vietnam inflation used to be a hot topic at the first session of the NA in July 2011. In 2010, the country’s inflation was at 11.75%, stayed the 17th rank over 182 countries.

2012 Inflation Forecast at 7.9 -14.7%

Vietnamese Academy of Social Sciences expected the country’s headline inflation to fall to 7.9-14.7%, core inflation to fall to 5.46% (5.0-5.92%) in 2012.

Lower inflation in 2012 is believed to be the result of the Government’s Decision No.11 which will be implemented through the end of 2012 with key targets: cutting the public investment, curbing credit growth at 18%, money supply at 15%, and sharply raising food supplies.

Source TEI/News Writer/Stoxplus

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