Inflation edges up slightly to 4.98% in June

Compared with the previous month, consumer prices in June rose by 0.3%.

Nguyen Duc Thang, head of the GSO's Price Statistics Department, said that the slight increase in June CPI was attributed to stable prices of essential goods and abundant supplies of agricultural products.

Medicine and healthcare costs posted the biggest one-month increase at 0.74%, followed by a 0.61% increase in the group of utility bills and building materials.

Food costs and restaurant services rose 0.28% from the previous month, primarily driven by a 0.54% in foodstuff prices.

Education fees stayed nearly unchanged from May while telecommunications services dropped by 0.15%, the only commodity posting a decline in June.

In June, gold prices went down slightly by 0.12% while the US dollar index was up 0.49% from the previous month.

Economists said Vietnam can achieve its inflation target of below 7% if there are no major upheavals at home and in the world.

They warned that the Government should still consider keeping inflation in check as one of its top priorities, despite the slow pace of price increases in the first half of 2014.

Low inflation is expected to make lending rates fall further, helping businesses to cut input costs, thereby boosting consumer demand and economic growth.

(Source: Nhandan Online)