Vietnam's inflation hit 18.12% in 2011: Report

Vietnam's annual inflation this year will be 18.12 percent, slightly above a government projection of 18 percent, a state-run newspaper quoted a minister as saying on Thursday.

Planning and Investment Minister Bui Quang Vinh gave the estimate at a government meeting on Thursday, the Nguoi Lao Dong newspaper said in an online report. In 2010, Vietnam's official inflation rate was 9.19 percent. During 2011, inflation has raged and been a major economic problem.

In some months, the annual increases of the consumer price index have topped 20 percent. Vietnam has not yet reported an inflation figure for December, though the newspaper said the index this month would increase 0.53 percent from November.

For November, the rise from October was 0.39 percent, the smallest monthly increase since June.

The government has been trying to keep annual inflation this year at 18-18.5 percent, and it has tightened bank loans to slow the annual credit growth to 12-13 percent, from 27.65 percent last year, Central Bank Governor Nguyen Van Binh has said.

The government's latest inflation estimate is below the World Bank's forecast of 19 percent this year before easing to 10.5 percent in 2012. The government is expected to publish annual inflation details later this month.

Reuters

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