Vietnam inflation likely to ease from end q2/2011, double digit for whole year
Vietnam consumer price index (CPI) will only start falling from the end of the second quarter of this year due to government policies lag, the analyst with local financial website NDHMoney forecast.
The government’s Resolution 11 has been really working and Cutting aggregate demand policy is “specific” for high inflation situation, the analyst cited Nguyen Tien Thoa, the Ministry of Finance’s Head of Price Management Department as saying.
It is expected that the aggregate demand in 2011by VND110 trillion including VND50 trillion on lowering credit growth target to 20% and VND60trillion as a result of tightening monetary and fiscal policies, Thoa said on late February.
Vietnam’s inflation accelerated at its fastest pace in almost two and a half years in April, ramping up pressure on one of Asia’s most troubled economies and suggesting further efforts to rein in prices could be in the works.
Vietnam CPI soared by 3.32% from March and 17.51% on-year, the General Statistics Office of Vietnam said on April 24, further casting doubts on the ability of authorities to cap inflation at 7% this year.
Vietnam inflation appears to slow down but still at the double-digit figure this year, lower than the 11.75% increase of 2010, NDHMoney forecast. – Stoxplus.com
Tags: Vietnam 2011 inflation, Vietnam economic, Vietnam economy, Vietnam inflation