HANOI, Oct 23 (Reuters) – Vietnam’s consumer prices in October could ease slightly from September following lower prices of food and fuel, state-run newspapers reported on Thursday.
Vietnam has been facing double-digit annual inflation each month since November last year. The government aims to bring inflation to below 15 percent next year from a forecast 24 percent this year.
A decrease of the consumer price index could mark the first monthly fall since March 2007 when prices in the Southeast Asian country eased 0.2 percent from the previous month.
Cao Sy Kiem, a member of the government’s Financial and Monetary Advisory Council, said prices this month could ease around 0.1 percent from September, the online Dan Tri newspaper (www.dantri.comvn) said.
‘This (fall) would come because of lower prices of fuel and food, which account for a large proportion in the price basket,’ Kiem, a former State Bank of Vietnam Governor, was quoted as saying. Food prices account for nearly 43 percent of the basket Vietnam uses to calculate the consumer price index.
Vietnam cut retail petrol prices twice last week, with a total reduction of 6 percent following lower oil prices on global markets.
October’s consumer prices in Ho Chi Minh City, Vietnam’s largest, eased 0.24 percent from September, the first fall this year thanks to a drop in food and fuel costs, the city’s statistics department said on Tuesday.
Inflation in the city, Vietnam’s business centre, serve as an early indication of the trend in the national inflation figure.
(Reporting by Dang Trung Nghia; Writing by Ho Binh Minh, Editing by Jacqueline Wong)