[Vnbiz] June inflation -- slowing down

[Vu The Binh]

Dear a. Hoanh, a. Phong,

 From my point of view, it's a slight improvement, due to:
- government policies to cut down the inflation by strong actions since 
beginning this year. Now it seems that there are some influence
- government policy to keep the gasoline price fixed until end of JUN

Let's see what's going to happen on July. Still a long way.

However, showing the lower number would effect people's behavior 
positively.

Have a great day, Binh.

Hong-Phong_Pho at ita.doc.gov wrote:
> [ Vietnam Business Forum ]
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> Dear Brother Hoanh:
> What's the purpose of a forum if not  for exchanging different views?
> I am just sharing with you and others my view of what is the more useful 
> set of data to look at to discern trends.  Sorry that you consider it 
> unnecesary arguments.
> Sure, inflation is going up in every country, but show me where it is 
> going up faster than in Vietnam.
> It is incorrect to conclude that because there is inflation, every 
> country in the world is doing worse.  That is because GDP and wages are 
> also going up.
> Your Y2000 USD is worth more than your Y2008 USD, but if your 2008 wages 
> is the same as your 2000 wages or has not increased at least the same as 
> inflation rate, then you may have a problem.  Also if you took the Y2000 
> USD and put it in the bank, your Y2008 USD fund should be at least $1 
> USD + $X USD in accumulated interest, and more that inflation. 
>  Otherwise you would not put it in the bank.  That was the situation 
> with the VND earlier this year when bank interest rate was lower than 
> inflation, and is effectively a negative interest rate.  So in order to 
> control inflation, interest rate has to be raised to match inflation 
> rate, which is what the government is doing, but only recently.
> You may not like how this mechanical approach is used to run a market 
> economy, but that's how it works.  And we all respond to market signals 
> when we make our personal economic decisions when we go shopping 
> everyday or make decide where to live, where to bank, etc.
> HPP
> 
> 
> 
> *"Tran Dinh Hoanh" <tdhoanh at gmail.com>*
> Sent by: vnbiz-bounces at mail.saigon.com
> 
> 06/26/2008 06:44 PM
> Please respond to
> vnbiz at vietlinks.net
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