Inflationary Pressure Falls

January 2006
Asia Monitor: South East Asia Monitor Volume 1;Jan2006, Vol. 17 Issue 1, p4
Country Report
Country Report
The article discusses the economic conditions of Vietnam. Inflation in Vietnam will moderate over the forecast period, despite soaring prices in 2005. There are three major factors behind the increase in inflation in 2005. The main reason was the government's decision to cut oil price subsidies three times. New outbreaks of bird flu also appear to be contributing to inflationary pressures. Food accounts for nearly half the basket that Vietnam uses to calculate its consumer price index, and with the avian flu virus threatening to reduce food supplies again, food prices have been rising.


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