The consumer price index (CPI) in Vietnam is forecast to rise by between 0.3 per cent and 0.4 per cent in October and it is difficult to surpass 7 per cent for the whole year, said the government’s market management group.
With such a rise, Vietnam is expected to reach the target for curbing the inflation rate below the economic growth rate of 8 per cent set by the National Assembly earlier this year, said the group.
In the remaining three months, higher demand for goods and services and the increase of minimum salary would push up buying power.
In addition, the unexpected weather changes and epidemic diseases, risks from high prices of the global commodities, materials, crude oil and jewelries would also affect the local prices.
In October alone, the prices of foods are predicted to go up due to the increasing exports of rice in the context that local paddy production is facing difficulties resulting from weather and diseases.
The ministries, agencies and authorities are proposed to continue taking measures to control bird flu and food-and-mouth diseases and stabilize prices of key commodities as well as balance goods supply and demand.
According to the General Statistics Office (GSO), the CPI is estimated to rise by 0.3 per cent in September, bring the inflation rate in the first nine months to 5.1 per cent, which is lower than the 6.8 per cent rise in the same period last year.
Vietnam eyes to curb the index increase at 6-7 per cent this year, compared to the increase of 8.4 per cent last year.
However, the Asian Development Bank (ADB) has recently forecast that Vietnam would face an inflation rate of 8.3 per cent in 2006, while the British Standard Chartered Bank put it at 7.7 per cent.
VNA, GSO Sep 2006
Vietnamese
