This slight rise is considered a positive sign of the macro economic situation in the fourth quarter of the year.

The General Statistics Office (GSO) stated that this trend has been steady since May, apart from a slight increase in August due to the impact of oil price increases.

Furthermore, cutting back on public spending and changes in consumers’ habits have also contributed to restricting the CPI increase during September.

Deputy Head of the Finance Ministry’s Market and Price Research Institute Vu Dinh Anh said that it is likely to keep the inflation rate at under 25 percent for the whole year due to the CPI downward trend and the implementation of monetary tightening solutions.

Anh, however, noted that the pressure of the rise in the CPI will remain high in the remaining months of the year as this is the time for businesses to increase their production and investment, resulting in an increase in capital disbursement rates and consumption demand while supply sources are reduced.

Sharing Anh’s view, economic expert Ngo Tri Long said the slow CPI increase over the past months is only the initial positive sign. He emphasised the necessity to maintain current monetary controlling measures.

At talks between the Government and economic experts on Vietnam’s economic situation and prospects last week, many international experts warned Vietnam of the impacts of the second inflation round and complex global economic developments, such as unstable oil prices.

Local experts forecast that the whole year’s CPI will stand at 25 percent while experts from the Standard Chartered Bank predict that Vietnam’s CPI will be 25.5 percent this year and 15 percent in 2009.