Inflation Forecast at 3.5 per cent in First Quarter of 2005

Vietnam's consumer price index (CPI) is predicted to post a strong rise of around 3.5 per cent in the first quarter next year after jumping 9.5 per cent in 2004 (compared with 3 per cent in 2003) due to soaring demand for goods and services in the period to the Lunar New Year festival falling on February 7-10.

The Domestic Market Control Group forecasted CPI rise in January at over 1 per cent. The figure in February will be around 2 per cent and 0.5 per cent rise is for March, pushing inflation in the January-March 2005 to around 3.5 per cent, compared with 4.9 per cent in Q1 2004 and 2.5 per cent in 2003.

• L.D