Vietnam inflation accelerates too quickly as in 28 months
April 23, 2011, 11:31 PM EDT by Bloomberg News
April 21 (Bloomberg)–accelerated at the fastest pace since 2008, pressure on the Government policy further exacerbate Vietnam inflation after doubling a key interest rate in less than six months.
Consumer prices rose in April 17.51% a year earlier, according to figures from the General Statistics Office in Hanoi today published. The rate is the highest since December 2008 and compares the 13.89 percent pace last month. Prices increased to 3.32 per cent in April from March.Policy makers have increased the repurchase rate to 13 percent from 7 percent in November and you cut to the target for 2011 credit growth tame inflation and again the confidence of the investors in the Government‘s capacity to prevent the economy from overheating. “Still, food and raw materials of the budget make a large part of expenditure and increase in the gasoline and electricity costs fuel pump inflation, standard & poor’s said this month.”"Inflation little sign of a response to monetary and fiscal austerity measures just yet, shows”, said Bill Stoops, chief investment officer of Ho Chi Minh City based fund Dragon capital. “Government policy to inflation is slowly working with effect lag.”The inflation rate can almost 20 percent peak from about 13 percent by the end of the year, relaxation according to u.k. listed Viet Nam property fund Ltd., which Central Bank increased Capital.Vietnam from Dragon borrowing costs is headed for the second time in less than a month on April 1., if refinancing rate has been increased by 13 percent from 12 percent. The buyback was raised to the same level.Policy RateThe repurchase rate, which the Central Bank open market operations conducted, Vietnam’s key policy, according to Santitarn Sathirathai, a seat in Singapore is an economist at Credit Suisse Group AG, which expects an increase to 14 percent by the end of the year.More said increases the burden of debt can boost Sathirathai in a research note. “Market interest rates are Fund as high as 21 per cent, to Viet Nam property.”This concern to attract will force a CAP to increase interest rates, how much the State Bank of Viet Nam ready, it is, use other tools to tighten monetary policy “, he said inflation Wachstum.Vietnamesische, relying on quantitative controls on credit and money is not only a result of global influences”, with strong domestic demand, advanced money and a weaker Dong all their contribution, Sathirathai.Eine Government decision that said the power prices as often as every three months the after market conditions a further increase of electricity prices by up to 40 per cent in June, according to Viet capital securities signal can be adjusted. “15 Per cent in March rose by electricity prices about.”According to the Ministry of finance, the most recent adaptation was not sufficient, to market-oriented, fully customize “Marc Djandji, head of research for Viet capital, said in an April 18 note.”
–Jason Folkmanis in Ho Chi Minh City. Editor: Stephanie Phang, k. Oanh HA
The reporter on this story contact: Jason Folkmanis in Ho Chi Minh City on the folkmanis@bloomberg.net
The editor responsible for this story contact: Stephanie Phang at sphang@bloomberg.net
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