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Vietnam Inflation Slows to 17.27%

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Vietnam Inflation Slows to 17.27%

By Bloomberg News - Jan 21, 2012 1:03 PM GMT+0800
Vietnam’s inflation slowed for a fifth month in January, giving the central bank more room to cut interest rates as a deteriorating global economy dims the outlook for exports.

Consumer prices climbed 17.27 percent from a year earlier, the General Statistics Office said in Hanoi today, compared with an 18.13 percent pace reported earlier for December. Prices rose 1 percent in January from December.

Vietnam’s central bank signaled this month that it may cut rates to “more suitable” levels after the first quarter. While emerging markets from Thailand to the Philippines have reduced borrowing costs to spur growth, the International Monetary Fund and the World Bank said last month Vietnam must guard against loosening monetary policy too soon.

“Inflation slowing down will give the central bank more confidence to cut rates,” Trinh Nguyen, a Hong Kong-based economist at HSBC Holdings Plc., said before the data release. “But they’ll want to look at how inflation behaves excluding food and energy prices before they make a decision as to when to cut.”

Vietnam’s dong fell 0.15 percent yesterday to 20,900 per dollar. The VN Index of stocks fell 0.1 percent, its first decline in two weeks. Central bank Governor Nguyen Van Binh said earlier this month that the dong may weaken further in 2012, after it fell 7.4 percent against the dollar last year.
Interest Rates

The central bank cut its repurchase rate to 14 percent from 15 percent in July last year after a series of increases to tackle inflation. It raised the refinancing rate to 15 percent by the end of 2011 from 9 percent at the end of 2010.

“The State Bank of Vietnam has continued its tight monetary policy stance through the end of last year, and this has meant less excess liquidity in the system,” Deepak Mishra, the World Bank’s Hanoi-based lead economist for Vietnam, said in e-mailed comments before the report. “Global commodity prices have stabilized and therefore the risk of externally induced inflation has come down.”

Vietnam’s inflation is the fastest in a basket of 17 Asia- Pacific economies tracked by Bloomberg, stoked in part by credit growth. Last year, credit through Dec. 21 expanded 11 percent, the State Bank of Vietnam said this month, compared to the 19 percent full-year figure that the IMF had projected in June.

Consumer-price growth in 2012 may be less than 12 percent at worst and 8.5 percent to 9 percent in a “good” scenario, Binh said Jan. 11.

“The government has clearly shifted its policy toward ensuring stability of prices and the currency,” Louis Taylor, chief executive for Vietnam at Standard Chartered Plc (STAN), said in Ho Chi Minh City earlier this month. “Over the next few months, we’re going to see a rapid decline in the headline inflation number.”

Gross domestic product in Vietnam, a manufacturing hub for companies such as Intel Corp., grew 5.89 percent in 2011, down from 6.78 percent in 2010.

--Jason Folkmanis in Ho Chi Minh City. Editors: Rina Chandran, Stephanie Phang, James Regan
 
As I said: with ADB-Japan help, our inflation will reduce soon , and we need ADB-Japan help in East-West economy corridor to unify Sub-Mekong nation too :cool:
 
Happy new year to everyone !!!

Chúc mừng năm mới !!!

नया साल मुबारक हो !!!

新年快乐 !!!


新年快樂 !!!


새해 복 많이 받으세요 !!!

幸せ新しい年 !!!

نیا سال مبارک ہو... !!!
 
If it is 17% now and has been slowing for past 5 months , then what was it like in august
 
it seems vietnam is facing running inflatimon [when rate of inflation is 10 % or more it is called running inflation.]
 
^ running inflation is 2nd worst type of inflation.

if not controlled it may then go worst: galloping inflation where rate of inflation is 100 % which may go up to 1000 %.

example : post WW 1 Germany.
 
^ running inflation is 2nd worst type of inflation. if not controlled it may then go worst: galloping inflation where rate of inflation is 100 % which may go up t o 1000 %. examle : post WW 1 Germany. .:dd tggjjddmmggappddmn
Our inflation raise up just bcz we buy so many weapons like Kilos, Gepard, Sigma, S-300, Yakhont, Bastion-p, sU-30KM2 recently ,it will reduce soon when we can manufacture few parts of those weapons by ourselves :)
 
^ it seems there is excess money supply and scarcity of grains, durables in your nation.
anyway your Govt. may reduce money supply in your economy. best luck to Vietnam.
 

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