Vietnam inflation reaches 22.97pc in 2008

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HANOI, Dec 25 (AFP): Vietnam's consumer prices rose by 22.97 per cent in 2008, compared to 8.3 per cent in 2007, the state-run general statistics office (GSO) said today.
Food prices were up by 49.16 per cent, housing and construction materials by 20.51 per cent, and beverage and tobacco by 10.75 per cent.
However year-on-year in December, inflation fell to 19.89 per cent, after a 24.2-per cent year-on-year rise in November.
Inflation has been slowing since August, when it peaked at 28.3 per cent.
For the third consecutive month, prices have fallen on a monthly basis, by 0.68 per cent between November and December. 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 per cent to 14 per cent.
But has recently been reversing its policy, last Monday cutting its rate for the fifth time since late October, as small and medium enterprises appeared hardly hit by difficult access to credit and the initial 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 US, Europe and other markets.
On Wednesday the government announced GDP growth of 6.23 per cent this year, below a target of around 6.5 per cent, 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 per cent GDP growth in 2009.