Vietnam Sept CPI expected to rise 0.3%-0.4%

Vietnam consumer price index in September is expected to rise between 0.3% and o.4% from August driven by dollar price hike and seasonal factors

Vietnam consumer price index in September is expected to rise between 0.3% and o.4% from August driven by dollar price hike and seasonal factors including higher material prices, and unfavorable weather conditions, the VnEconomy reported August 31 citing local market price commission’s forecast.

In August, the State Bank of Vietnam devaluated the dong by 2.09%. The move led to a soaring dollar prices on both official and unofficial markets and imported inflation, which adds pressure on higher CPI in September.

Rising prices of essential consumption goods and materials in the local market are expected to increase further including steel, construction materials, sugar, paper, fertilizer, food and foodstuffs, animal feeds on seasonal higher demand.

September is also the storm and disease season which could boost up the prices in some localities and sectors.

However, the still weak consumption demand might help tame the CPI in September, the commission expects, adding that total revenue of social goods and services in August rose only 0.66% on month to VND131 trillion, lower than the early months of this year.

Analysts earlier forecast Vietnam’s CPI has bottomed in July with 0.06% increase on month and expect the Southeast Asian country’s CPI to quicken in the last quarter of the year on the year-end effect.

Vietnam targets to curb inflation at 8% this year and the government of Vietnam has taken a number of measures to curb inflation and hold down prices.

Analysts said curbing inflation at single-digital this year would be a success for Vietnam. -Stoxplus.com

Tags: Vietnam CPI, Vietnam CPI 2010, Vietnam economic, Vietnam economy

Posted by VBN on Sep 1 2010. 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