Vietnam inflation eases in 2009 as economic growth slows

VNStockNews.com - Vietnam's consumer price index (CPI) rose 1.38 per cent in December from the month before, bringing the annual inflation rate to 6.9 per cent, much lower than last year's 25.2 per cent, the General Statistics Office said Thursday.

Inflationary pressure eased because the country's economic growth was slower in 2009 than the year before, economist Pham Chi Lan said.

The government planned economic growth of 6.5 per cent, but then readjusted growth rates to 5 and 5.5 per cent.

Prices were up 6.5 per cent year on year, the statistics office said, adding that the rise in the CPI was led by food and foodstuffs, followed by transportation and construction costs.

Food prices increased 6.9 per cent from last month and 4.6 per cent year on year while foodstuffs were up 0.9 per cent from November and 8.4 per cent year on year.

Transportation costs increased 2.5 per cent month on month but were down 1.23 per cent compared with last year.

Construction prices were up 1.4 per cent from November and 3.5 per cent year on year.

"This inflation figure can be considered a success of the government in running the economy so far this year," said Lan. "However, high inflation could be back next year because food and petrol prices continue upwards."