Tuoi Tre spoke to Vu Dinh Anh, deputy director of the government’s Market and Price Research Institute, who believes that keeping the price rise down to single digits will represent a success for the government.

A rise in the prices of education, housing, and construction materials, and a fall in the dong’s value are all immediate reasons for the rising consumer price index.

Since the beginning of this year there has been financial and monetary loosening to spur economic growth, which has in turn brought inflationary pressure, Anh explains.

Vietnam’s year-to-date CPI has risen 7.58 percent. Analysts believe it is virtually impossible to keep it down within the government’s 8 percent target. What do you think?

As usual, the CPI will be up by more than 1 percent on average in the last two months of the year.

The instability in the international economy after the crisis has brought about unexpected effects on Vietnam.

So some experts believe that the optimal solution now is to keep inflation to single digits as the government has not been able to keep up with what is going on with domestic and global prices.

Demand normally surges at the year-end, pushing up the CPI. What do you think we should do to keep it to single digits?

Curbing inflation depends on macroeconomic factors and is not as simple as just stabilizing prices. What we should focus on currently is improving fiscal policies, managing the state budget, controlling credit and cash supply, and bettering the forex system. All these must ensure that inflation will not rear up again next year.

Source: Tuoitrenews