The direct cause of the country's inflation is the
imbalance of money - goods. Once the money supply exceeds the goods supply,
inflation is likely to occur.
The evidence is that the total
money supply has always increased higher than the country's GDP (gross domestic
product) growth rate since 2007 so far, Do Thuc, director of General Statistics
Office (GSO) said.
At the press conference of GSO
on December 29, Mr Nguyen Bich Lam (deputy director of GSO) said averagely,
money contributed about 50% to the country's inflation.
Representative of Trade
Statistics -Services and Price Department also said the prices of fuel and
electricity have contributed to the country's consumer price index (CPI)
increase by 1.7%.
According to GSO, Vietnam's
average CPI this year increased 18.58% while the GDP growth for the full year
2011 increased 5.89% from 2010. Both figures are lower than the targeted
figures.
However, according to GSO, in
the difficult situation that Vietnam still kept the GDP growth rate and tamed
inflation at such figures, which showed a major effort of the Government.
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