Vietnam’s inflation rate expected at 8.6pct, Thang Long says

Vietnam’s inflation rate may average 8.6 percent this year, higher than the government’s 7 percent target even as the central bank tightens its monetary policy, according to Thang Long Securities Joint-Stock Co.

Inflation accelerated for a fourth month in December, with consumer prices rising 11.8 percent from a year earlier, according to the General Statistical Office. That’s the highest rate since February 2009.

“Vietnam continues to experience high inflationary pressure as demand rises during the coming Lunar New Year celebration,” Pham The Anh, chief economist at Thang Long, the country’s biggest brokerage, said in a report received today. “Year-on-year inflation will be at its peak in January.”

The Anh was referring to the holiday period at the start of February. The State Bank of Vietnam raised its key interest rate in November and the government said it won’t weaken the exchange rate as policy makers tackle price pressures. – Bloomberg

Tags: Vietnam 2010 inflation, Vietnam economic, Vietnam economy, Vietnam inflation

Posted by VBN on Jan 13 2011. 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