HANOI, Aug 16: Vietnam on Thursday cut retail petrol prices in the communist government's latest effort to reduce inflation that last month topped eight per cent year-on-year, state media reported.

The government reduced retail petroleum prices by 500 dong ($0.03) to a 10,900-11,600 dong ($0.68-0.72) band per litre under a decision by the ministries of finance, and of trade and industry, said the online VietnamNet.

Authorities intervened for the first time since allowing state-run energy companies in May to set their own pump prices and removing state subsidies.

Vietnam last week cut import tariffs by between 30 and 60 per cent on a range of food and dairy products, steel and building materials and other goods in a bid to bring down consumer prices.

In July, Vietnam's consumer prices rose 0.94 per cent, taking the inflation rate so far this year to 6.19 per cent. The year-on-year rise in consumer prices index was 8.4 per cent for the month.

Vietnam, a member of the WTO since January is targeting 8.5 per cent annual economic growth this year but fears the inflation rate may be higher.—AFP