Illustrative image (Photo: VNA) Hanoi (VNA) – Vietnam’s consumer price index (CPI) in February and March will be lower than that in the previous month if the acute respiratory disease caused by the novel of the coronavirus (Covid-19) ends in Q1, according to the General Statistics Office (GSO).
Pharmaceutical and electricity prices are likely to rise in the coming time due to the Covid-19 outbreak, according to the GSO.
On the contrary, the prices of meat and vegetable, catering and tourism services, hotels and entertainment may decline due to a downward trend in consumer’s demand.
The GSO predicts that food and foodstuff prices will surge, regardless of whether the Covid-19 outbreak ends in the first quarter of 2020 or continues afterwards.
In the first scenario, the prices of food, beverages and garment-textile strongly rise in the Lunar New Year holiday due to increasing demand then stabilise in line with consumption rule, with the Covid-19 ending in Q1. In that case, this year’s CPI is projected at 3.96 percent.
Meanwhile, in the second one, if the prices of pork, petrol and gas all increase, worsened by unfavourable weathers such as drought, saline intrusion and water shortage and the virus threat persists, it may expand 4.86 percent in the year.
To realise the target of keeping CPI below 4 percent in 2020, the GSO proposed that the Government not adjust prices of goods under State management in the first half of the year.
The State bank of Vietnam also needs to stabilise interest and exchange rate in a bid to control inflation rate between 2 percent and 2.5 percent./.
Pharmaceutical and electricity prices are likely to rise in the coming time due to the Covid-19 outbreak, according to the GSO.
On the contrary, the prices of meat and vegetable, catering and tourism services, hotels and entertainment may decline due to a downward trend in consumer’s demand.
The GSO predicts that food and foodstuff prices will surge, regardless of whether the Covid-19 outbreak ends in the first quarter of 2020 or continues afterwards.
In the first scenario, the prices of food, beverages and garment-textile strongly rise in the Lunar New Year holiday due to increasing demand then stabilise in line with consumption rule, with the Covid-19 ending in Q1. In that case, this year’s CPI is projected at 3.96 percent.
Meanwhile, in the second one, if the prices of pork, petrol and gas all increase, worsened by unfavourable weathers such as drought, saline intrusion and water shortage and the virus threat persists, it may expand 4.86 percent in the year.
To realise the target of keeping CPI below 4 percent in 2020, the GSO proposed that the Government not adjust prices of goods under State management in the first half of the year.
The State bank of Vietnam also needs to stabilise interest and exchange rate in a bid to control inflation rate between 2 percent and 2.5 percent./.
VNA
