CPI forecast to slow down in coming months

VGP – The consumer price index (CPI) in February has surged by 1.37% against the previous month and is projected to decline in March, according to the General Statistics Office (GSO).

February 24, 2012 4:31 PM GMT+7

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In the second month of the year, gold price went up 3.27% and US dollar dropped by 0.41% against January.

The CPI decrease stemmed from increasing output of rice, proper preservation of essential commodities, smaller public investment, and drastic measures on anti-inflation.

Experts predicted that CPI would be on the decline in March and slightly surge in the following months.

Investors no longer flock to gold and foreign currency markets as inflation is cooling down.

In near future, lending interest rates are forecast to drop, paving the ways for businesses to access to more capital and speeding up production. By now, five banks, namely, Agribank, BIDV, Vietinbank, Vietcombank, VIB have reduced lending rates.

Experts also forecast that the exchange rate would continue to be stable for the whole year at the pace of 2-3% or equal to 2.24% in 2011.

By Kim Loan