Inflation Moderates

August 2005
Asia Monitor: South East Asia Monitor Volume 1;Aug2005, Vol. 16 Issue 8, p5
Country Report
Country Report
The article focuses on issues related to rising inflation in Vietnam. A key factor behind the high inflation is the escalation of food prices, following droughts last year and new outbreaks of bird flu which have reduced food supplies. Food prices account for nearly half the price basket that Vietnam uses to calculate inflation, so the upward trend is a concern. The government has introduced several measures in response to higher inflation, including a substantial increase in the country's reserve requirements and a lowering of tariffs on petroleum and steel products.


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