Deputy Prime Minister Vuong Dinh Hue speaks at the meeting of Steering Committee for Price Management in Hanoi on July 3 (Photo: VNA) Hanoi (VNA) – A CPI rise at three-year low during thefirst half of 2019 has greatly helped stabilise the macro-economy, promoteeconomic growth and leave much room for inflation control for the remaining ofthe year, according to Deputy Prime Minister Vuong Dinh Hue.
He made the assessment at a meeting of theSteering Committee for Price Management in Hanoi on July 3.
The committee reported that during the firsthalf of 2019, prices soared in January and February as the nation prepared forthe Lunar New Year holiday, but decreased slightly in March before graduallyrebounding in the two following months, and then declined again in June.
The Consumer Price Index (CPI) in June fell 0.09percent from the previous month. During the first six months, it grew 2.64percent compared to the same period last year, which was a three-year low andfar below the ceiling rate of 4 percent set by the National Assembly.
The CPI developments in the reviewed periodrelatively matched the forecast made at the year’s beginning, the committeesaid.
Noting factors helping to curb the CPIexpansion, experts said while grain food prices decreased thanks to abundantsupply and lower rice import demand in the world, pork prices plunged betweenMarch and May due to the African swine fever epidemic. Additionally, prices ofhealthcare services fell 0.1 percent from December 2018, and domestic petrolprices have also dropped again since the latter half of May.
Ministries, sectors and localities havecoordinated closely to ensure the supply-demand balance, adjust prices ofState-managed commodities in an appropriate manner, and steer exchange ratesbasing on the flexible daily reference exchange rate mechanism.
Recognising the outcomes, Deputy PM Hue, who is alsochairman of the Steering Committee for Price Management, underlined the resolveto keep inflation at 3.3 – 3.9 percent this year.
He asked the committee to continue keeping aclose watch on the supply-demand situation to take suitable solutions tostabilise the market, especially in terms of essential goods like pork,construction materials and petrol. While the fiscal policy must be governed ina strict manner, the monetary policy needs to be flexible and be coordinatedwith other macro-economic policies to keep inflation within the ceiling limit.
The core inflation this year should be keptwithin some 1.8 percent, he noted.
Hue asked ministries, sectors and localities toprovide information about price management to relevant agencies, the media andthe public in a timely fashion. They also need to increase the transparency ofstatistics relating to important commodities affecting people’s life.
At the meeting, Deputy Minister of Agricultureand Rural Development Tran Thanh Nam also reported by July, the African swinefever had been reported in 61 of the 63 provinces and cities, with only NinhThuan and Tay Ninh provinces still free from any outbreaks.
More than 2.8 million pigs weighing over 180,000tonnes have been culled. The amount of live pigs sold to the market in the sixmonths was estimated at over 1.8 million tonnes, down 4.7 percent year on year.
The ministry is directing the implementation ofdrastic solutions to prevent the epidemic from spreading further. It has alsoassigned relevant agencies to work with companies to develop vaccine againstthe virus, Nam added.-VNA
VNA
