Vietnam's annual inflation accelerated to 25.2 per cent this month from 21.4 per cent last month, its seventh consecutive double-digit reading and one of the highest in Asia.
The government's General Statistics Office estimated yesterday that the average inflation in the first five months of this year would rise to 19.1 per cent compared with the same period last year, from the 17.6 per cent in January-April.
Monthly inflation data are not fully available but the inflation rate this month could be the highest since 1991 when Vietnam reported its annual inflation at 67.5 per cent.
Imports have soared, pushing the trade deficit to an estimated US$14.4 billion in the first five months, more than three times higher than in the same period of last year, the government said on Monday.
The government has sought approval from the one-party National Assembly, or parliament, to cut the 2008 growth target to 7 per cent from between 8.5 per cent and 9 per cent previously.
The Asian Development Bank forecast Vietnam's growth slipping to 7 per cent from 8.3 per cent in 2007 and estimated inflation of 18.3 per cent for all of this year.
Hanoi estimated food prices this month jumped 67.8 per cent from last May. Food accounts for 42.8 per cent of the goods and services basket that Vietnam uses to calculate consumer inflation.
Rice prices, which have nearly tripled on the international market this year, have nearly doubled in Vietnam since last May.
Last week Prime Minister Nguyen Tan Dung told the central bank to adjust interest rates in line with market moves and urged a better management of the base rate used for deposits and lending to help control credit growth and overall inflation.
The reminder came after Vietnamese banks started raising interest rates as the central bank removed a 12 per cent ceiling on dong deposit rates and raised three other key rates to fight a surge in inflation.
The government's General Statistics Office estimated yesterday that the average inflation in the first five months of this year would rise to 19.1 per cent compared with the same period last year, from the 17.6 per cent in January-April.
Monthly inflation data are not fully available but the inflation rate this month could be the highest since 1991 when Vietnam reported its annual inflation at 67.5 per cent.
Imports have soared, pushing the trade deficit to an estimated US$14.4 billion in the first five months, more than three times higher than in the same period of last year, the government said on Monday.
The government has sought approval from the one-party National Assembly, or parliament, to cut the 2008 growth target to 7 per cent from between 8.5 per cent and 9 per cent previously.
The Asian Development Bank forecast Vietnam's growth slipping to 7 per cent from 8.3 per cent in 2007 and estimated inflation of 18.3 per cent for all of this year.
Hanoi estimated food prices this month jumped 67.8 per cent from last May. Food accounts for 42.8 per cent of the goods and services basket that Vietnam uses to calculate consumer inflation.
Rice prices, which have nearly tripled on the international market this year, have nearly doubled in Vietnam since last May.
Last week Prime Minister Nguyen Tan Dung told the central bank to adjust interest rates in line with market moves and urged a better management of the base rate used for deposits and lending to help control credit growth and overall inflation.
The reminder came after Vietnamese banks started raising interest rates as the central bank removed a 12 per cent ceiling on dong deposit rates and raised three other key rates to fight a surge in inflation.
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