Vietnam inflation eases to two-year low
Vietnamese inflation has slowed to the weakest pace in more than two
years, the government said Tuesday, mirroring cooling economic growth in
the communist state.
Consumer prices climbed 5.35 percent year-on-year in July, the
smallest increase since November 2009.
Inflation was in double-digit figures until April this year. It hit
23 percent in August 2011, forcing the government to repeatedly hike
official interest rates in an effort to prevent the economy from
overheating.
But slowing economic growth and easing price pressures have since
triggered a turnaround in policy, with a series of interest rate cuts by
the central bank this year.
Economists say the sharp slowdown in consumer prices is the result of
the tighter monetary policy and cooling domestic consumer demand.
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