As a result, the CPI rose by 18.04 percent in the first half of this year and 20.34 percent as compared to a year ago, says MPI Deputy Minister Cao Viet Sinh.

Food and food services continued to take the lead in price rises (3.29 percent), followed by housing and building materials.

Mr Sinh attributes the good signs to a bumper winter-spring rice crop, which yielded 1 million tonnes more than the same crop last year. In addition, commodity exports rose by nearly 30 percent while the trade deficit fell to US$1.3 billion and foreign direct investment reached an all time high of more than US$31 billion. Price hikes and epidemics were also kept in check. 

However, Mr Sinh warns the prices of important material and consumer goods remain high and the trade deficit is still much higher than last year. Therefore, he says ministries, sectors, localities and enterprises should continue to implement the Government’s adopted measures in the hope of achieving a GDP growth rate of 7 percent by the end of the year.