Experts have called for taking pre-emptive measures to keep inflation in the single-digits this year as threats still loom over the economy.

Vu Dinh Anh, Deputy Head of the Institute for Scientific Research of Market Prices, told a workshop in Hanoi on July 16 that the target of less than 10 percent inflation was not out of reach as the consumer price index (CPI) increased just 2.68 percent in the first half of the year over December, 2008.

Prices of some essential products and services climbed slightly, with food up by 0.59 percent, foodstuffs by 2.2 percent and building materials by 5.56 percent. Transport and post services actually went down by 0.57 percent.

This has painted a bright picture in full contrast to that of the first half of 2008, laying a firm foundation for strong confidence that the 2009 CPI would stay below double-digits, Anh said.

However threats remain ahead with Vietnam ’s heavy dependence on imports of essential materials and fuels, he warned, citing petrol imports.

Domestic factors such as the loosening of monetary policies since 2008 as well as the economic stimulus packages, including subsidised bank loan interest rates, may have side-effects on the economy, he warned.

Increases in the prices of electricity, power and public transportation services could cause additional pressure, the economic expert added.

The National Assembly has therefore revised target CPI growth rates down to below 10 percent for this year, with 7 percent as the target to try for.

The top policy-making agency’s views have been shared by a number of other agencies with expertise on the subject.

The State Bank of Vietnam has estimated the rate will be between 6 and 9 percent while the Ministry of Planning and Investment estimated 7-8 percent and the World Bank, 8 percent./.