Vietnam says inflation rate up 9.5 percent this year
HANOI - Vietnam's inflation rate this year came in at 9.5 percent, official preliminary data showed. Last October, Vietnam said inflation had already risen 10.3 percent from a year earlier and 8.6 percent in the first 10 months of 2004.
According to official statistics, food, which represents half the basket of goods on which the consumer price index is based, jumped 17.1 percent from a year earlier, while the cost of rice increased 14.3 percent. Prices for pharmaceutical products and health care services rose 9.1 percent, while construction materials increased 7.4 percent. The cost of garments and footwear rose 4.1 percent. The price of gold increased by 11.7 percent and the US dollar was up 0.4 percent against the dong compared with last year.
In August, the government ordered a budget spending cut of 10 percent this year in a bid to put the brakes on rising inflation and prevent Vietnam's economic growth from being derailed. While Vietnam has come a long way since the late 1980s, when the bankrupt communist government was battling annual inflation of over 700 percent, early warning bells have started to ring over the latest uptick in prices. Analysts say the government has been caught between wanting to continue the push for strong economic growth and preventing a dangerous spiral of rising prices. Inflation was controlled at around 3.0 percent in recent years.
Agence France Presse - December 23, 2004
|