Vietnam’s consumer price index in March is estimated to have risen 0.75% from Feb, driven by higher costs of housing, construction materials and foodstuffs the government’s General Statistics Office said.
The index was up 9.46% from a year earlier, the GSO noted.
Economists attributed March’s slight rise in CPI to the government’s decisions to hike prices of coal, electricity and petroleum products in the month.
Vietnam has raised retail electricity prices from March 1 by 6.8% while Petrolimex, the country’s biggest petroleum trader, increased retail prices of gasoline by VND590/liter Feb. 21.
The devaluation of the dong in February is another reason for CPI increase as it has prompted companies to increase prices for many imported goods such as steel, powder milk, and garment and textile materials.
As various traditional festivals will last until the end of March, the demand for traveling and foods remains high, putting a big pressure on the inflation.
Economist Nguyen Quang A, former director of the Institute for Stable Development in Hanoi said “it is impossible for the government to keep the inflation rate under 7% this year and criticized the timing of recent hikes in state-controlled energy prices.
Meanwhile, John Lipsky, first deputy managing director of the International Monetary Fund, said at a conference in Hanoi March 22 that inflation and credit growth “have been a problem, and seemingly are being addressed successfully.”
In March, prices of housing and construction materials, including rentals, electricity, water and fuel, posted the highest growth of 1.38% on-month and 14.98% on-year.
Foodstuffs and food services rose 1.03% on-month and 10.73% from a year earlier while transport saw a sharp on-year rise of 20.63%.
Beverages and tobacco grew 0.16% on-month and 8.11% on-year and education were up 0.18% and 6.44%, respectively. Apparel, footwear and hats witnessed the lowest on-month increase of 0.15%.
Post and telecommunication, however, continued falling by 0.2% on-month and 4.08% on-year as telecom firms have launched various promotion and discount programs to attract subscribers.
Gold in March increased 1.21% on-month and 36.86% on-year. The U.S. dollar exchange rate was also on the same trend with respective rises of 1.28% and 9.52%.
The CPI in urban areas in Vietnam grew 0.85% from the previous and 10.41% from March 2009 while the index in rural regions was up 0.70% and 8.69%, respectively. (GSO March 2010)
Vietnamese
