Nguyen Duc Thang, Deputy Director of the Trade, Services and Price under GSO, said that the CPI increases by 12.63% if comparing the CPI by December 2007 with the CPI by December of 2006, i.e the inflation rate is 12.63% for the last 12 months. Besides, the CPI increases by 8.3% if comparing the average CPI of 2007 with the average CPI of 2006.

In 2007, the Government decided to use the second CPI calculation method instead of the first one. What is the different between the two calculation methods?

In fact, GSO always gives two figures based on two calculation methods. However, to date, government’s agencies always use the figure brought about by the first calculation method for reference, which is 12.63% for 2007.

If we use the 12.63% figure, it means that the CPI increase of this year is much higher than the GDP growth rate, and that the Government cannot fulfill the target set before that the GDP growth rate must be higher than CPI increase. Meanwhile, if the 8.3% figure is accepted, the target has been reached.

As the second CPI calculation method is thought to come in line with international practice, the Government has decided that this method will be used from now on.

The two different methods have led to two different figures, 12.63% and 8.3%. Do you think that there will be any changes in economic policies the Government will apply when the new method is used?

I have to say that no matter which calculation method we use, the inflation rate in 2007 is very high and the Government needs to take drastic measures to curb the inflation.

Who have been the biggest sufferers from the price storms?

Consumers, of course. However, the biggest sufferers will be employees and retired persons.

What do you think about the commodity prices on Tet?

In principle, January and February always see the biggest price increases in the year. I think that the price may increase by 3% in February, the Tet month.

Some experts have expressed their doubts about the reliability of the figures released by GSO, because GSO mainly conducted survey in provinces, not in rural areas. What would you say about this?

We conducted surveys in both urban and rural areas, and the CPI calculation is carried out based on the basket of 494 commodity items. Our staffs try to investigate the prices of food and construction materials, which always fluctuate, three times a month. Meanwhile, they investigate the prices of TV or refrigerators, which fluctuate less, once every month.

Source: Tuoi tre.