Vietnam is forecasting its highest rate of inflation in two years despite recent policy moves and growing international pressure for the government to get a grip on fast-rising prices.

The government's statistical agency said Thursday that prices in March are likely to be 13.9 percent higher than in the same month last year. The agency said the inflation rate for the three-month period beginning in January is likely to stand at 12.8 percent.

International rating agencies cited Vietnam's high inflation among other factors when they lowered the country's credit rating in December. A representative of the International Monetary Fund said last month that Vietnam needs to focus more decisively on containing inflation.

Vietnamese officials say the inflation rate is expected to slow down later this year in response to a recent devaluation of the currency and higher interest rates. Deputy Prime Minister Nguyen Sinh Hung told the National Assembly this week that government will follow “a tight and prudent monetary policy.”