Inflation reaches record highs in first quarter

24-Mar-2011 Intellasia | Ditinews | 7:01 AM Print This Post

Price hikes of electricity and petroleum are among main causes for the sharp increase in the consumer price index (CPI) in the first quarter of this year.

Deputy prime minister Nguyen Sinh Hung said that high interest rates, an unstable exchange rate and changing gold prices have contributed to rising CPI. Vietnam’s CPI in March is estimated to grow by 2.2 percent, compared to 1.74 percent in January, and 2.09 percent in February.

The Ministry said that, the first quarter’s CPI will rise of 6.1 percent, sets a new record. The domestic market has been impacted by the increase in global inflation, particularly including the prices of food, gold and crude oil, Hung said, adding that, the political turmoil in North Africa and the Middle East, along with Japan’s earthquake has also influenced on the Vietnamese economy.

The Hanoi Statistics Office showed that Hanoi’s CPI for March increase d by 2.41 percent over last month and 13.56 percent compared to the same period last year. This is the sharpest rise of the city’s CPI since February 2010 when it stood at 2.61 percent. The Vietnamese National Assembly has set a target for a CPI increase of 7 percent this year.

Last year, the country’s inflation rate was estimated at 11.75 percent, much higher than the target of 7 percent, set by the National Assembly, or the 8 percent set by the government. Recently, government issued Resolution No. 11, focusing on measures on inflation control and macro-economic stabilisation, including tightening control over public investments and reducing budget deficit to below 5 percent of GDP.


Category: Economy

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