Inlation First 6 Months in 2012 in Vietnam

Contents

EXECUTIVE SUMMARY 3

INTRODUCTION 3

THEORETICAL BASIS 3

Definition 3

Classification 3

The main reasons cause inflation 4

The index measuring inflation 4

CHARACTERISTICS OF INFLATION 6 MONTHS AT VIETNAM 5

Analyzes actual inflation 5

The main factors cause deflation in 6 months (January to June) at Vietnam 8

CONCLUSION 11

RERERFENCE 11

EXECUTIVE SUMMARY

This report will provide some basic information about inflation such as definition, classification, the main reasons and ways to measure inflation. In addition, it gives some information about the inflation of Vietnam in first 6 months in 2012 and what reasons cause that result.

INTRODUCTION

In recent years, the Vietnamese economy often has to face status which has high inflation. Specially, inflation is very high in 2008 and rose to over 23%. Government to make the system 8 measures to control inflation and achieve certain results when inflation in 2009 and 2010 tended to decrease. In addition, government gives comprehensive system solutions to curb inflation from the beginning of the year 2011. However, inflation also increased in 2011, with 18.23%. In 2012, how inflation is, inflation rate increases or it will decrease and cause what affects to inflation rate in the first six months of 2012.

THEORETICAL BASIS

Definition

a. Definition: Inflation is a situation in which the prices of most goods and services are rising over time."

(Andrew B. Abel, Ben S. Bernanke and Dean Croushore, 2011, page 619).

b. Expression characteristic of inflation:

+ The phenomenon of increased paper currency beyond the needs of freight traffic leads to the effect of depreciating paper money

+ Synchronized commodity price increases, continuous

+ The instability in the social and economic life

Classification

Inflation can be divided into three main types.

• Deflation: when prices of most goods and services decline.

• Inflation rate: the