Vietnam's runaway inflation eases in February

by lexie Sat Feb 25, 2012 8:38 am

Feb 25, 2012 01:47 EST

Vietnam's runaway inflation eases in February

am's inflation fell for a sixth consecutive month in February to the lowest level in almost a year, according to official figures, following government efforts to concentrate on economic stabilisation.

Statistics released Friday showed that the country's consumer prices rose 16.44 percent year-on-year in February -- still a high rate, but the nation's lowest for 11 months and down from 17.27 percent in January.

Last year, the communist nation's runaway inflation was among the world's highest, peaking at 23 percent in August.

Vietnam refocused its efforts from economic growth to stabilisation to deal with the price rises and other challenges, including dwindling foreign reserves, a yawning trade deficit and downward pressure on the dong.

But a senior banker in Hanoi, asking not to be identified, said more needed to be done to curb inflation.

"There are signs of a lower credit lending rate by commercial banks to promote business and production," she told AFP. "However, it's still difficult to say whether the economic picture of the country will be better in the coming months."

Vietnam's economic growth slowed to 5.9 percent in 2011, falling just short of the government's target of six percent.

Hanoi said it aims to achieve growth in gross domestic product of 6 to 6.5 percent in 2012.

http://www.newsmeat.com/news/meat.php?articleId=124812031&channelId=2951&buyerId=newsmeatcom&buid=3281