The consumer price index (CPI) increased in June and hit record monthly highs of 0.83% in August and 1.06% in September. It eased once more in October (0.49%) and November (0.34%).
A recent survey revealed credit organisations expect December’s CPI will rise around 0.62% from November readings. Respondents believe the Government has inflation under control.
The National Financial Supervisory Commission concurs, forecasting inflation in 2013 will not exceed 6.3%.
This is the second year Vietnam has contained inflation below the NA’s and Government’s targets.
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Vietnam has not let ongoing international economic difficulties distract it from proactively working towards macroeconomic stability, contained inflation, and sustainable economic growth. The annual inflation rate fell from 23.02% in August 2011, to 7.5% in August 2013, to 5.78% in November 2013.
The same credit organisation survey recorded expectations of single-digit inflation -6.74% - in 2014. Keeping the rate below the NA’s set 7% target still presents a challenge.
Credit organisations say State price adjustments will directly impact inflationary movement in 2014. Additional inflationary pressures could come from higher economic growth target (5.8%), loosening State debt budgetary limits to 5.3% of GDP, and issuing more Government bonds.
