Vietnam CPI likely to rise 2% in Mar: MoIT

Vietnam Consumer Price Index (CPI) is likely to increase by 2% on month In March,

Vietnam Consumer Price Index (CPI) is likely to increase by 2% on month In March, the online newspaper VnExpress reported on March 12, citing the Ministry of Industry and Trade (MoIT).

The higher retail prices of electricity, fuel, the 8.5% devaluation of domestic currency and the world prices hike have been pressuring on the price level this month. The prices hike will raise the production cost of domestic goods and boost the price level due to psychology factor.

Vietnam CPI is likely to accelerate by around 2% due to affects of the fuel and electricity prices hike, including 1.03% increase directly, Nguyen Van Ninh, the Minister of Finance (MoF) said at the government meeting on February 24.

The local newswire NDHMoney forecasted based on Leontief model that the country’s CPI is likely to increase by 1.9% on month and 13% on-year in March.

The prices of food and restaurant services; housing and construction material staple are estimated to show the highest increase level this months, according to the StoxPlus’s survey.

Earlier, analysts expected CPI to peak in February during the hottest season of Lunar New Year festival and start to ease in late first quarter, possibly bottom in the third quarter this year – Stoxplus.com

Tags: Vietnam CPI, Vietnam CPI 2011, Vietnam economic, Vietnam economy