Vietnam CPI likely to rise 0.2%-0.25% in Aug

Vietnam’s consumer price index in August is forecast to increase between 0.2% and 0.25% from July, driven by higher costs of various essential commodities, the Price Management Department under the Ministry of Finance said.

The department attributed the price hike to the fact that storm season is approaching and blue-ear disease has not yet been put under control.

The government’s General Statistics Office has said the CPI were up 0.06% in July, the lowest level since March 2009 and for the same month since 2004, as a result of decreases in the prices of rice, transport and construction materials.

Analysts expected that the CPI slowdown would offer more scope for implementing macroeconomic policies to ensure the economic growth rate of 6.5% this year.

If the CPI continues falling in the coming months, it will facilitate the issuing of bonds and the adjustment of monetary and fiscal policies, they noted.

The Domestic Market Management Bureau under the Ministry of Industry and Trade predicted late July that the CPI will go up 0.1% in August, supported by lower costs of foods.

Vietnam is striving to curb its CPI at 8% this year, including a rise of 4.84% in Jan-July.

Tags: Vietnam CPI, Vietnam economic, Vietnam economy