The prices of many consumer goods began to rise even before the 12 percent hike in minimum wage announced by the Government took effect on May 1.

An expert from a market research company in HCM City, who wished to remain unnamed, said prices have risen by at least 5 percent in anticipation of the wage increase.

Under a decree issued on March 25, the minimum wage for employees in State agencies, the armed forces, political organizations, socio-political organizations, State-owned companies, and other government bodies has gone up by 80,000 to 730,000 VND a month.

Allowances and other benefits will also increase proportionately.

But a few days earlier, in late April, the prices of vegetables shot up at most HCM City markets.

The owner of a vegetable shop in Thanh Da market in Binh Thanh district said salad vegetables have doubled to 25,000 VND a kilogramme while tomatoes have gone up by half to 12,000 VND.

Nguyen Tan Tai, a worker at the Tan Thuan Export Processing Zone in district 7, said his house rent was set to go up to 850,000 VND month from 600,000 VND.

Electricity and water charges followed suit, he said.

Nguyen Thi Sang, a retired worker living in Tan Binh district, said her pension increased by 12.3 percent, or 200,000 VND a month, to more than 2.2 million VND.

“With the additional amount, I cannot afford to pay the increase in the prices of electricity, water, food and services,” Sang said.

Independent analysts said the 80,000 VND hike failed to keep pace with the rising prices.

Since the beginning of the year the prices of many items have shot up by 20 percent.

According to the HM City Statistics Office, prices rose by 0.23 percent to April and 4.02 percent so far this year./.