Vietnam Dec CPI Likely to Rise 1% On-Month, Up 6% at Year-end: Ministry
The Ministry of Industry and Trade has forecast that Vietnam’s consumer price index in December will rise 1% from a month earlier, raising the index for the whole year to 6%, compared to 7% predicted by International Monetary Fund (IMF).
The CPI hike will be led by higher prices of imported commodities, soaring transportation and higher production costs as a result of recent fuel price rise and the State Bank of Vietnam’s bold measures to stabilize domestic monetary market.
Demand for food and foodstuff will continue soaring by the end of this year as local firms are rushing to stock for the Lunar New Year, or Tet festival, said the ministry.
On November, the central bank decided to raise the base interest rate to 8% per annum from 7% effective from Dec 1, reset the inter-bank dollar exchange rate up 5.44% to VND17,691 and narrow the trading band by 2% to 3% from Nov 26.
The General Statistics Office said CPI in November rose 0.55% from a month earlier, fuelled by higher costs of food and foodstuff, housing and construction materials and transportation. The 11-month index was up 4.35% from a year earlier. (Labor)
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