The Government, ministries, and agencies directed localities to manage prices while a number of firms actively joined the price stabilization program to ensure the supply of necessities to people, especially food.
Source: VGP
Though inflation was under control in the past eight months, the economy still poses risk to the consumer price index (CPI) in the remaining months of this year and next year, said the Director General of the General Statistics Office of Việt Nam (GSO) Nguyễn Thị Hương.
Hương said amid inflation in many countries worldwide due to the prolonged Russia-Ukraine conflict, the COVID-19 pandemic, and disrupted supply chains, the Vietnamese Government took drastic measures to reduce petrol prices, stabilize electricity and water prices and tuition fees, and maintain reasonable interest rates. As a result, inflation was kept at 2.58 percent in eight months of this year, easing pressure on input costs.
The Government, ministries, and agencies directed localities to manage prices while a number of firms actively joined the price stabilization program to ensure the supply of necessities to people, especially food.
Pointing out risks that could potentially impact CPI during the remainder of this year and next year, Hương said the global material prices remain high which could push up prices of consumer products at home, thus exerting pressure on inflation.
The fuel prices are also likely to hike again due to the complicated Russia-Ukraine conflict and rising demand for energy in China when its economy is recovering from the pandemic.
At the same time, the supply of fertilizers and cereals used for animal feed production is falling, potentially leading to an increase in food prices.
Meanwhile, consumer demand is expected to rebound, especially in tourism, entertainment, and dining, she said.
According to her, the GSO suggested ministries, agencies, and localities fully prepare food and necessities to meet public demand.
The Ministry of Agriculture and Rural Development must ensure the supply of pork, particularly during the year’s end while the Ministry of Industry and Trade and localities must stabilize prices.
The supply of fuel at home must also be guaranteed and the reduction of value added and special consumption taxes should be considered in case the global fuel prices bounce back.
The GSO also proposed boosting the production of other important input materials such as iron and steel, construction materials, and animal feed.
The State Bank of Vietnam (SBV) was advised to continue directing an active and flexible monetary policy and combine it with fiscal and macro-economic policies to control inflation and ensure the supply of capital to the economy, she said.
Source: VNS