Under-4-percent CPI for 2021 is believed to be feasible

Deputy Minister of Industry and Trade Do Thang Hai speaks at a recent Government press briefing. (Photo: VietnamPlus).

Hanoi (VNA) – Vietnam will certainly keep its inflation rate under 4 percent for the whole year as targeted by the National Assembly since the average Consumer Price Index (CPI) growth is now estimated at around 2 percent, according to Deputy Minister of Industry and Trade Do Thang Hai.

At the Government’s press briefing on November 6, Hai said although the increases in the prices of several products, particularly oil and gas and transport costs, have exerted pressure on the CPI and domestic inflation rate, CPI growth will stay below 4 percent this year.

The CPI in October was down by 0.2 percent compared to September but rose by 1.81 percent against the same period last year, according to the General Statistics Office (GSO).

The CPI in the two remaining months of the year may surge as factors driving the figure down during social distancing will no longer have any impacts.

In October, food and catering services decreased by 1.28 percent from the previous month largely owing to drops of 0.25 percent and 9.38 percent in the prices of rice and pork, respectively, thanks to abundant supplies.

Housing and construction materials fell by 0.26 percent, due to a cut in housing rental rates to support people at the time when social distancing order remained in place to stamp out the spread of COVID-19.

Electricity prices were also reduced because the arrival of autumn affected demand for power and water compared to the previous month. Post and telecommunications inched down 0.04 percent.

Among eight groups of commodities and services experiencing rising prices last month, transport witnessed the highest month-on-month increase of 2.51 percent attributed to the fuel price hike.

Education inched up 0.25 percent against September.

The GSO also pointed out that core inflation in October saw a month-on-month decline of 0.17 percent but a year-on-year rise of 0.5 percent. In the first 10 months, the figure increased 0.84 percent compared to the same period last year, reflecting price movements driven by the hikes of food, petrol and oil and gas prices.

Core inflation in October and the first 10 months of 2021 compared to the previous year stood at the lowest level since 2011.

As November-December will be a time to focus on production, travel and procurement serving for major holidays, CPI in tourism services and entertainment is projected to see growth.

According to Hai, in order to control the inflation rate and ensure supply for domestic consumption, it is necessary to keep a close watch on both domestic and global price developments, and give timely warning of the risks that affect prices and inflation rate in Vietnam.

Relevant agencies and departments should create the best conditions to promote production, ensure sufficient supply and circulation of goods, while raising public awareness of the Government, Ministries, sectors and localities’ relevant policies and measures to remove false information about market prices that could lead to an increase in inflation rate.

As prices of global goods are forecast to rise in the time ahead, relevant parties should make further efforts to ensure supply of raw materials, he said, laying stress on the importance of collaboration between the Government, ministries, sectors, and businesses./.