Vietnam 's inflation is expected to ease to a rate of 1.8-2 percentin May following April's one-month surge of nearly 4 percent, says adomestic market management team.
April's consumer price index (CPI) rose by 3.32 percent over March, thehighest rate of increase since May 2008. April's figures pushed thenation's inflation in the first four months of this year to 9.64percent, outpacing targets set for the entire year.
Inflation wouldcontinue to be high for the near future due to the impact of economicand policy factors on the domestic economy, including the deregulationof electricity rates (slated to begin fluctuating under free marketrules starting in June) and a minimum wage increase in May, said formerState Bank of Vietnam Governor Cao Sy Kiem.
The current bout ofhigh inflation was ignited when the Vietnam dong was devalued by9.3 percent against the US dollar in February, followed by hikes inpetrol costs and electricity rates in March. Inflation was alsospreading globally, especially in Asia , exerting great pressure on theVietnamese economy.
The Ministry of Industry and Trade has vowed,however, to hold the line on the prices of food staples, saying that thedomestic rice price would not increase further due to ample supplies inthe south and a plan to add to stockpiles. The price of pork was alsonot expected to rise further due to an already high price, the ministrysaid.
Both Vietnam Banking Association general secretary Duong ThuHuong and National Advisory Council for Financial and Monetary Policiesmember Tran Hoang Ngan have said that the Government's timely adoptionof Resolution 11 has prevented inflation from getting worse. Theystressed the consistently tighter monetary policies to avoid reignitingpressures that could result in a double-digit inflation rate at the endof the year.
"If the Government is resolved to pursue tightermonetary policies between now and the third quarter, inflation couldbegin to ease by the end of the third quarter or early in the fourthquarter," said Fulbright Economics Teaching Programme director Vu ThanhTu Anh.
The Asian Development Bank (ADB) and the British bankBarclays have shared a gloomier view of Vietnam economy, however,saying that inflation over the next several months could continue toincrease beyond prices now 13 to 14 percent higher than in the sameperiod last year.
The ADB forecast that Vietnam 's inflationcould stand at over 13 percent by year's end while Barclays put thefigure at closer to 15 percent.
Short-term measures, includingexchange rate adjustments, reform of the foreign exchange market and acut in public expenditures were only the beginning of the effort tobring inflation under control, stressing the need for consistentlong-term measures to include economic restructuring./.
April's consumer price index (CPI) rose by 3.32 percent over March, thehighest rate of increase since May 2008. April's figures pushed thenation's inflation in the first four months of this year to 9.64percent, outpacing targets set for the entire year.
Inflation wouldcontinue to be high for the near future due to the impact of economicand policy factors on the domestic economy, including the deregulationof electricity rates (slated to begin fluctuating under free marketrules starting in June) and a minimum wage increase in May, said formerState Bank of Vietnam Governor Cao Sy Kiem.
The current bout ofhigh inflation was ignited when the Vietnam dong was devalued by9.3 percent against the US dollar in February, followed by hikes inpetrol costs and electricity rates in March. Inflation was alsospreading globally, especially in Asia , exerting great pressure on theVietnamese economy.
The Ministry of Industry and Trade has vowed,however, to hold the line on the prices of food staples, saying that thedomestic rice price would not increase further due to ample supplies inthe south and a plan to add to stockpiles. The price of pork was alsonot expected to rise further due to an already high price, the ministrysaid.
Both Vietnam Banking Association general secretary Duong ThuHuong and National Advisory Council for Financial and Monetary Policiesmember Tran Hoang Ngan have said that the Government's timely adoptionof Resolution 11 has prevented inflation from getting worse. Theystressed the consistently tighter monetary policies to avoid reignitingpressures that could result in a double-digit inflation rate at the endof the year.
"If the Government is resolved to pursue tightermonetary policies between now and the third quarter, inflation couldbegin to ease by the end of the third quarter or early in the fourthquarter," said Fulbright Economics Teaching Programme director Vu ThanhTu Anh.
The Asian Development Bank (ADB) and the British bankBarclays have shared a gloomier view of Vietnam economy, however,saying that inflation over the next several months could continue toincrease beyond prices now 13 to 14 percent higher than in the sameperiod last year.
The ADB forecast that Vietnam 's inflationcould stand at over 13 percent by year's end while Barclays put thefigure at closer to 15 percent.
Short-term measures, includingexchange rate adjustments, reform of the foreign exchange market and acut in public expenditures were only the beginning of the effort tobring inflation under control, stressing the need for consistentlong-term measures to include economic restructuring./.
