Inflation expectations down

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Hanoi Times English - 34 month(s) ago 3 readings

The Hanoitimes - Expectations of inflation have come down sharply given a drastic slowdown in the consumer price index (CPI) growth in this year’s first quarter against December 2011, said Vo Van Quyen, head of the Ministry of Industry and Trade’s Domestic Market Department.

The Hanoitimes - Expectations of inflation have come down sharply given a drastic slowdown in the consumer price index (CPI) growth in this year’s first quarter against December 2011, said Vo Van Quyen, head of the Ministry of Industry and Trade’s Domestic Market Department.

CPI in the first quarter this year only inched up by 2.55% compared to December last year, the lowest same-quarter rise in eight years, said Quyen.

CPI in March grew a slight 0.16% over the preceding month, continuing the trend of low growth in seven consecutive months. This shows that the economy no longer lets signs of inflation expectations push up actual inflation as it did in March and the first quarter of previous years.

Though fuel prices were hiked in early March, it only affected the last week of the month. Meanwhile, foods and foodstuffs dipped 1.21% and 1.25% respectively because of the ample supply and the dropping pork prices given the information about the use of lean-meat additives in pig farming.

The fact that CPI has mildly moved up in recent months reflects the actual goods price increases. This means expectations of inflation have eased despite the rise of 2-3% in global goods prices this January and February, said Quyen.

He said the strong decline in gas prices and falling foodstuff prices would make CPI edge down. “April CPI is unlikely to spike but inch up slightly. Enterprises will face no volatility in supply and demand this month,” Quyen predicted.



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