Vietnam's monthly inflation rate will "cool" this month compared with April as the government's monetary tightening measures take effect, Finance Minister Vu Van Ninh said Wednesday.
"Right now we have to be more determined in carrying out our planned measures to fight inflation," Ninh told reporters while attending an Asian Development Bank meeting in Hanoi. Ninh said June's monthly inflation rate may slow further.
The Vietnamese government has boosted interest rates and cut the country's target for credit growth in an effort to contain consumer prices. The central bank on Wednesday increased its repurchase rate to 14 percent from 13 percent. The rate has now doubled since November.
Vietnam's monthly inflation rate in April was 3.32 percent, the fastest since 2008. The country's year-on-year inflation rate in April reached 17.51 percent, also the fastest since 2008.
The nation's year-on-year inflation rate may accelerate until the second half, said Ayumi Konishi, the ADB's Vietnam country director, on May 2. The full-year inflation rate may be about 11.75 percent, according to Minister of Planning and Investment Vo Hong Phuc, who said Tuesday the government is prioritizing the fight against inflation over encouraging economic growth.
"I was very encouraged to hear yesterday the government saying that even if it is at the cost of growth, they will fight inflation to ensure macroeconomic stability," ADB Managing Director Rajat Nag told journalists in Hanoi Wednesday.