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Inflation rate may downsize to one digit this year

Economists said that this year’s inflation rate may be kept at one digit thanks to the downsizing consumer price index.

The CPI, which rose quickly in first months of this year, began to fall down in recent four consecutive months and reached record low in July since 2004. Prices of consumer goods become more stable and the trend is expected to remain for several months ahead. Macro-economic policies, along with tightened price management, have produced positive results and may drive the inflation rate down to one digit, said economist Vu Dinh Anh from the Ministry of Finance. The package of solutions, defined in the Government’s Resolution 18/NQ-CP dated on April 6, 2010 on stabilizing macro-economy and curbing inflation, have also been effectively translated into reality, noted Deputy PM Nguyen Sinh Hung at a recent press briefing on the outcomes of the Cabinet’s regular meeting for July. However, economists warned that the CPI often climbs up in the year-end months. The national economy still faces challenges, such as domestic high interest rates, unpredicted natural disasters and potential pandemics. The Government tasked ministries, sectors, and localities to continue lowering inflation rate through strict price management, preventing speculation, and tightening control over the interest rates. To keep the CPI at 7-8% this year, Deputy PM Hung said the Government planned to strengthen inspection over primary commodities like medicines and milk; stabilize prices of coals for electricity generation; and properly adjust prices of petroleum./.

VGP Hai Minh

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