massive inflation without wage increases in vietnam - How?

Reading this Bloomberg article got me thinking, in Vietnam, if wages are staying the same for the majority of people, how does inflation hit 19.8%? Is it just a currency issue? or is there one really rich dude driving around to every shop paying crazy prices for food?

http://www.bloomberg.com/news/2011-...china-appeal-diminishes-as-labor-strikes.html

"Inflation quickened to a 29-month high of 19.8 percent in May, a level the World Bank called “intolerable” in a report this month."

“The price of everything -- food, gas, electricity -- has gone up by more than my pay rise,” said Kien, 24, whose monthly salary is equivalent to $87. “I can’t even afford to start a family. I wouldn’t have enough to buy milk for my baby.”
 
Back
Top