CPI to Slow Down in Second Half, MPI Official Says

Vietnam&rsquos consumer price index (CPI) will slow down its pace gradually in the second half of 2008, predicted Deputy Minister of Planning and Investment Cao Viet Sinh.

 

The CPI got eased in June with an estimate rise of 2.2 per cent, after it recorded the highest rise of 3.91 per cent in May.

However, prices of commodities often slow down after June, Sinh said.

The food fever is cooling down, making great contribution to putting a brake on the CPI surge in the month, because food and foodstuff now account for 42.8 per cent of CPI basket, he said.

In addition, the prime minister has said that it will keep prices of electricity and water unchanged by the end of this year as well as to give measures to spur supply and reduce demand.

However, Sinh is concerned that the suspension and reduction of construction projects and difficulties in industrial production due to higher input prices and capital shortage will have bad impacts on the economy.

Curbing inflation is dependent on the way the government takes its monetary policy and macroeconomic policy and prices of commodities in the world markets, he said.

The CPI is estimated to rise 17.24 per cent from the beginning of this year. (Saigon Economic Times)