Vietnam's inflation likely to touch 20pct: HSBC
Print 
Since the factors that cause inflation still remain tense, Vietnam's inflation may touch 20 percent in coming months, according to a recent HSBC report.
Vietnam's inflation In May continued to surge strongly and nearly touch the highest level in 2008.
In May, the country's inflation soared 19.8 percent from the same period last year, from 17.5 percent in April 2011 and thus the country's inflation increased for nine consecutive months.
If regarding the seasonal factor, in comparison with April 2011, the country's CPI surged 2.1 percent in May from the rise of 3 percent in April 2011.
The inflation on food price increased for 12 straight months, till May 2011, it increased 28.3 percent from the same period last year from 24.4 percent of April 2011.
If adjusting according to the seasonal factor, the food price in May 2011 increased 3 percent month on month after surging 3.8 percent in April 2011.
Currently, Vietnam's inflation issue still remains very tense. It has been about three months since Vietnamese government decided to switch from economic growth policy to inflation curb and carry out strictly tightening monetary policies.
The prices of all commodities in Vietnam increase, especially food and energy items. Although the country's CPI in May slowed down, it still stands at high level.
Thus, Vietnam's inflation has not been curbed and may exceed 20 percent in the coming months. HSBC forecasts there will be further tightening moves.
Although lawmakers tightened the policies and made many adjustments for some interest rate in 2011, some monitoring measures in the next months are still needed because the fight against inflation is hard to be able to finish soon.
