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Vietnam inflation reaches 23 percent in 2008: govt
AFP - 2 hours 26 minutes ago
HANOI (AFP) - - Vietnam's consumer prices rose by 23 percent in 2008, sharply up from eight percent in 2007, the state-run General Statistics Office (GSO) said Thursday.
Food prices almost doubled, the cost of housing and construction materials rose by more than 20 percent, and beverage and tobacco by more than 10 percent.
However year-on-year in December, inflation fell to less than 20 percent. It has been slowing since August, when it peaked at more than 28 percent.
The fall comes amid lower world commodity and energy prices and domestic fuel price cuts.
Vietnam, after more than a decade of rapid economic growth, has struggled to contain inflation in 2008.
Earlier this year, the state bank raised its benchmark rate several times, from 8.25 percent to 14 percent, but has recently reversed its policy.
Last Monday it cut its rate for the fifth time since late October, as small and medium enterprises appeared hard hit by difficult access to credit and the effects of the world economic turmoil.
Vietnam, a major exporter of manufactured goods such as clothing and footwear as well as commodities including rice, coffee and seafood, has already been hit by downturns in the United States, Europe and other markets.
On Wednesday the government announced GDP growth of 6.23 percent this year, below a target of around 6.5 percent, according to state television.
Prime Minister Nguyen Tan Dung said the focus next year would be to "ensure social security and maintain growth," to reach a similar target of 6.5 percent growth in 2009.
To this purpose, the state bank also decided Thursday to "adjust" the value of the national currency, fixing the dong at 16,989 per dollar -- a devaluation of three percent compared to Wednesday's rate of 16,494 dong per dollar.
The government said on its website that this should boost exports.
Vietnam's trade deficit widened to an estimated record 17 billion dollars in 2008.
According to figures published by the GSO, imports increased by 27.5 percent compared to 2007, to 80 billion dollars. Exports reached 63 billion dollars, up 30 percent.
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