2:24:53 PM | 4/12/2007
Vietnamese Prime Minister has asked the Ministry of Planning and Investment to revise the method to calculate CPI in line with international practices, the Government Office said.
Vietnam is using an old method, which has unreasonable features, especially the food and foodstuff makes up very high proportion in the CPI’s basket of commodities.
Vietnam’s CPI is reported to increase 9.45 per cent in 11 months. However, it really rises only 7.92 per cent if calculated with the international practices.
The General Statistic Office (GSO) has most recently modified the CPI calculation in May by expanding the basket of commodities to calculate CPI to 496 items, from 396 in 2000 and 196 in 1995, and divided in to 10 groups.
Food and foodstuff group makes largest contribution with 47.9 per cent of the CPI basket, reduced from 42.8 per cent as previously.
In a press conference November 30, Deputy Finance Minister Tran Van Ta admitted that the ministry has shortcomings in price fluctuation forecasts; therefore, it could not have sufficient measures to curb CPI.
The official attributed the reasons to the country’s low development and weak competitiveness, especially the openness of the economy, with imports accounting for 83 per cent of GDP. In addition, the Government has to made big compensation for petrol hike.
The Ministry of Industry and Commerce forecast that the CPI will be likely to rise 1.5 per cent in December and hit record high at 11 per cent this year. (Investment)
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