Consumer price rises slow in Vietnam cities
24-JUL-2008 Intellasia | Reuters
Jul 24, 2008 - 7:00:00 AM
|
|
Consumer prices in Vietnam's biggest cities are rising at a slower pace this month than in June, and that could result in the country's overall inflation also dropping in July, a state-run newspaper reported on Tuesday.
The consumer price index of HCM City would rise 0.54% this month from June, compared with a 2.37% increase from May, the Dan Tri online newspaper cited official statistics as showing.
Food prices in the country's largest city of eight million people would drop 1.39% in July from a month earlier, compared with a rise of 1.77% in June against May, the report said.
In Hanoi, consumer prices would rise in July at a monthly rate of 1.56%, slowing from a pace of 2.39% in June, it said, without giving any annual percentage change.
"The country's CPI in July would rise close to an optimistic scenario given by ministries, with a growth of 1.5%," the online newspaper said.
The Communist Party government is facing its biggest economic test since market liberalisation began in earnest in the mid-1990s. It has cut growth targets and raised interest rates three times this year among other measures to fight double-digit inflation.
The consumer price index rose 2.14% in June compared with May, less than the 3.9% increase in May, but the annual inflation rate picked up to 26.8% from 25.2% in May.
Economists are bracing for annual inflation to hit 30% next month after the government raised fuel prices by as much as 36% on Monday. Some analysts expect a marginal impact on July inflation from the hefty increase in fuel prices.
On Tuesday the Asian Development Bank cut its forecast for Vietnam's growth to 6.5% from its previous projection of 7% while it revised Vietnam's annual inflation this year up to 19.4%, from 18.3% previously estimated.
|
Advertising
