The very slight increase in July’s Consumer Price Index (CPI) isattributed to the government and local authorities’ efforts to curbinflation, reports the General Statistics Office (GSO).
According to the GSO, July’s CPI is estimated to have risen by only0.06 percent over last month, much lower than the earlier forecasts of0.2-0.3 percent and is the lowest monthly growth in CPI for a past year.
The government’s policies to stabilise prices havestarted to pay off in recent months driving July’s CPI growth to arecord low, said the GSO, citing the gradual decrease in the CPI, from1.35 percent in the first quarter to 0.21 percent in the second quarterand to 0.44 percent in the third quarter.
However,there are still many things to do to achieve the government’s target forthis year’s growth in inflation to be under 8 percent, as so farinflation this year has climbed to 4.84 percent, the GSO said.
Meanwhile, the Ministry of Planning and Investment (MPI) seems to bemore optimistic, predicting that the CPI in August will continue toincrease slightly and inflation for the whole year will be kept belowthe target.
As the economy is still to make a fullrecovery and people’s incomes have not improved much, a rise in theprices of essential goods items will have a considerable impact onpeople’s lives, according to the GSO.
Moreover,factors emerging from the world’s economy recovery that may affectinput costs as well as natural disasters are likely to result in asurplus in demand, making the prices of essential goods surge suddenly,leading to a rise in inflation, it said.
Therefore,according to the GSO, central government and local authorities shouldbe well prepared to take flexible measures and stabilising exchangerates and ensuring the market’s liquidity are top priority.
Recent moves taken by authorities in the larger provinces and citiesto help local businesses stock up with goods in anticipation of apossible surge in prices and the Ministry of Finance’s decision to askpetroleum traders to restrict changes to petrol prices are down to thegovernment’s determination to stop inflation from rising./.
According to the GSO, July’s CPI is estimated to have risen by only0.06 percent over last month, much lower than the earlier forecasts of0.2-0.3 percent and is the lowest monthly growth in CPI for a past year.
The government’s policies to stabilise prices havestarted to pay off in recent months driving July’s CPI growth to arecord low, said the GSO, citing the gradual decrease in the CPI, from1.35 percent in the first quarter to 0.21 percent in the second quarterand to 0.44 percent in the third quarter.
However,there are still many things to do to achieve the government’s target forthis year’s growth in inflation to be under 8 percent, as so farinflation this year has climbed to 4.84 percent, the GSO said.
Meanwhile, the Ministry of Planning and Investment (MPI) seems to bemore optimistic, predicting that the CPI in August will continue toincrease slightly and inflation for the whole year will be kept belowthe target.
As the economy is still to make a fullrecovery and people’s incomes have not improved much, a rise in theprices of essential goods items will have a considerable impact onpeople’s lives, according to the GSO.
Moreover,factors emerging from the world’s economy recovery that may affectinput costs as well as natural disasters are likely to result in asurplus in demand, making the prices of essential goods surge suddenly,leading to a rise in inflation, it said.
Therefore,according to the GSO, central government and local authorities shouldbe well prepared to take flexible measures and stabilising exchangerates and ensuring the market’s liquidity are top priority.
Recent moves taken by authorities in the larger provinces and citiesto help local businesses stock up with goods in anticipation of apossible surge in prices and the Ministry of Finance’s decision to askpetroleum traders to restrict changes to petrol prices are down to thegovernment’s determination to stop inflation from rising./.
