from a U.S. correspondent, The following report appeared in the New York Times on June 3: Economic officials have acknowledged that price i i i : s are ri ns Vietnam twice as fast as they had peedieted. ea ee -
At the end of 1966, American economists warned that th i ‘ e fragile South Vietnamese economy "could live with" price increases of no more than 30 percent in 1967. Further inflation, they said, would endanger the pre- — benefits of last June's far-reaching devaluation and economic reforms, . However, officials said yesterday that price increases this year may reach 50 percent. South Vietnamese economists have said privately for months that holding inflation even to this level would be difficult. Prompting the change in estimates was an 8 percent increase in prices recorded in May. In May, 1966, prices rose 10 percent, an increase judged so dangerous that the government finally enacted the reforms before the inflation got out of control. Following devaluation of the piaster from 73 to 118 for fl prices jumped 35 percent in July, but remained basically stable until the end of 1966. Prices have risen 25 percent so far this year. The largest single increase was recorded in March, when the delay in American rice imports drove the price level of this staple to a new high.