Vietnam - Vietnam 2011 inflation rises 18.12%: Minister

Vietnam’s consumer price index (CPI) in 2011 rose 18.12% after it skyrocketed 0.53% in December, local newspaper Nguoi Lao Dong (The Labourer) reported, citing Minister of Planning and Investment Bui Quang Vinh at a meeting on December 22 between the Government and provinces on 2012 socio-economic development tasks and state budget.

Deputy Prime Minister Vu Van Ninh said that, in 2011 all the countries around the world had to suffer inflation, but Vietnam had its own differences as its inflation was very high, sometimes hit approximately the top spot.

According to Bui Quang Vinh, developments of the inflation in 2011 were very complicated as CPI strongly rose in the early months of this year and slowed down from the second quarter. In the four last months, inflation showed signs of deceleration, up less than 1% per month.

But the inflation in December showed signs of moving up compared to the two previous months. In particular, inflation in October and November rose 0.36% and 0.39%, but it skyrocketed 0.53% in December.

It is noted that the inflation in December did not reflect the increased cost of electricity and ceiling ticket price hike for the second time because the time of price increases in these two commodities occurred after the date of closing the CPI data.

With the CPI rising 18.12% in 2011, the Vietnamese Government did not complete one of the important targets that that the National Assembly set out. In the last session in 2010, the Vietnam National Assembly or Congress passed the CPI target for 2011 at no more than 7%.

However, at the National Assembly session in June 2011, the Government proposed easing the CPI target of this year at no more than 17%. But even this revised target was not finally achieved in 2011 when the CPI rose up to 18.12%.

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