Vietnam inflation starts rising again in September

Vietnam's inflation accelerated for the first time in 12 months in September, up 6.48 percent on a year earlier, amid fears of a return to rocketing prices as the country grapples with multiple economic woes.

The consumer prices index (CPI) hit a three-year low of 5.04 percent in August, according to the General Statistics Office figures, after an all-out drive by the communist country to bring last year's double-digit inflation under control.

But cooling growth in the country's once-vibrant economy has seen Vietnam cut interest rates five times in 2012.

"Inflation could become again a macro-economic problem in coming months," economist Vu Dinh Anh told AFP.

He said September's CPI hike represented a record monthly increase of 2.2 percent, after increases in prices for key products including petrol.

Vietnam has struggled with double-digit inflation for years. Inflation peaked at 23 percent in August 2011, forcing the government to repeatedly hike interest rates in an effort to prevent the economy from overheating.

The country's economic growth slowed to 4.38 percent in the first half of this year compared with the same period in 2011.

The government is targeting single-digit inflation and a 6.0 to 6.5 percent growth in economic output for 2012. The overall inflation rate for the first nine months of 2012 stood at 9.96 percent year-on-year.

Loading...
  • COMMENT: A thin fine line
    COMMENT: A thin fine line 17 hours ago

    COMMENT The concept of sub judice contempt for ongoing court cases is an important one; it is in place to ensure that proceedings can be as objective as possible, rather than swayed by the court of … More »

  • Microsoft boss defends Xbox One price Tue, Jun 18, 2013

    Sony was E3’s big winner in large part because of the company's decision to price the PlayStation 4 at $399, a full $100 cheaper than Microsoft’s upcoming Xbox One. But the man in charge of Xbox … More »

  • Charity begins at home and in your workplace
    Charity begins at home and in your workplace Mon, Jun 17, 2013

    Photos: Government subsidised rental homes in Singapore. Mr M, 47, is a former senior sales and marketing manager at an electronics MNC for nine years before he was retrenched in 2009. Married with a … More »

  • New MDA licensing rules: Finding a way forward

    New MDA licensing rules: Finding a way forward

    New MDA licensing rules: Finding a way forward

    COMMENT More than 2 weeks since the announcement of new Internet regulations, the public is still none the wiser. Even foreigners and foreign organisations which might be affected by the new rules are still trying to understand the licensing regime. … Continue reading →

  • Singapore, Indonesia tussle over haze problem

    Singapore, Indonesia tussle over haze problem

    Singapore, Indonesia tussle over haze problem

    Smog from forest fires in Indonesia stayed at unhealthy levels in Singapore on Tuesday as the two neighbours blamed each other for the seasonal problem.

  • Singapore, Malaysia choking on haze from Indonesia

    Singapore, Malaysia choking on haze from Indonesia

    Singapore, Malaysia choking on haze from Indonesia

    Singapore urged Indonesia on Monday to take "urgent measures" to tackle its forest fires as severe air pollution blown from Sumatra island choked the densely populated city-state.