Vietnam’s banks forecast 2014 inflation below 7% in 2014
Vietnam’s banks forecast 2014 inflation below 7% in 2014
Results of a recent survey by the State Bank of Vietnam (SBV) show that domestic credit institutions expected that inflation in 2014 will be around 6.74 percent and in December CPI will increase about 0.62%.
However, Vietnamese bank believed that Vietnam should be wary of a number of factors putting pressure on inflation. In particular, the adjustment of the prices of commodities managed by the State can make the most influence. Besides, if the budget deficit is relaxed from 4.8% of GDP to 5.3% of GDP, plus the release of additional bonds, the policymaking agency will face tremendous pressure to balance the controlling inflation target.
As for the CPI in December, the survey with banks shows that it will increase by 0.62% compared with November. Since June, CPI growth rate tended to rise more highly than the early months of the year and reached the highest level in the last two months of the third quarter. However, the growth rate decreased in October and November.
With the current CPI growth rate, inflation in 2013 is likely to reach about 6.15% and remains under the government’s control.
Earlier, the National Finance Monitoring Committee forecasted that the annual inflation would be no more than 6.3%. This week the central bank and the General Statistics Office will make the official announcements of the results achieved in 2013.
vietnamnet
