Vietnam inflation to peak this month: World Bank

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Vietnam will be able to attain a measure of economic stability later this year after inflation hits its peak in June, according to the World Bank.

At a briefing in Hanoi on Thursday, Deepak Mishra, the World Bank's lead economist in Vietnam, said inflation could accelerate to 22 percent before easing to 15 percent by the end of the year.

The economy will regain its momentum in 2012 and its gross domestic product could grow 7.5 percent then, similar to the growth rates prior to the economic downturn, Mishra said.

He said the government has taken the right measures to rein in inflation and stabilize the economy. However, more efforts are still needed to reduce public investment, he said.

The government revised both its economic growth forecast and inflation target last month. It said gross domestic product may expand 6.5 percent this year, down from a December estimate of 7 to 7.5 percent. Inflation could stand at 11.75 percent by year-end, higher than the previously announced target of 7 percent.

Inflation rose 19.78 percent in May from a year earlier, compared with 17.51 percent in April, according to data released by the General Statistics Office.

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