CPI of January 2017 forecasted to increase slightly

	CPI in December 2016 increased by 4.74%
	Case of non-submission of final accounts
	CPI up 2.27% in January-October

Illustrative photo.

According to a report of the Price Management Department on the situation of market prices, January is the month approaching Tet holiday, so enterprises continue to purchase and stock goods as well as raw materials to meet the demand of people in Tet holiday. Accordingly, an increase in demand of shopping during Tet will impact on prices remarkably.

However, in January 2017, there are some important factors which contribute to stabilizing the price level such as a stable interest rate; abundant domestic supply of goods; ministries, the drastic inspections of Ministries, Departments and localities on essential consumer goods, the declaration of listing prices, the promotions and discounts of products.

Thus, the Price Management Department has forecast that the consumer price index (CPI) in January 2017 will increase slightly from the previous month.

In 2017, the process of restructuring the economy and solutions to remove difficulties for enterprises from 2016 will continue to be implemented to take effect, showing economic recovery. Besides, there is a risk of higher inflation due to the impact of the delay of policies on removing difficulties for production and business of enterprises.

In addition, the adjustment of medical services, education services, electricity and petrol prices will make the consumer price index increase. Also, climate changes affect the supply of goods and services, especially food, which put heavy pressure on commodity prices.

At the 2nd session, the National Assembly adopted Resolution XIV on the plan of socio-economic development in 2017 including a target of consumer price growth of about 4% on average.

Therefore, in order to stabilize the prices in the market, the functional authorities should proactively, flexibly and aggressively complete the assigned tasks to meet the target in line with the direction of the Government, the Prime Minister, the Deputy Prime Minister of the Government - Head of Steering Committee on price management, the Ministry of Finance and other relevant Ministries to keep an average inflation of about 4% in 2017 as the target of the National Assembly.

In December 2016, CPI increased by 0.23% from the previous month. In particular, the group of medicines and medical services increased with the highest rate of 5.3% (medical services increased by 6.93%) because in December 2016, there were 4 provinces and cities implementing price adjustment for medical services under the Ministry of Health and the Ministry of Finance‘s Joint Circular No. 37/2015/TTLT-BYT-BTC of 29th October 2015 (which made CPI increase by 0.27%).

In particular, the group of apparel, headwear and footwear increased by 0.25% due to a high demand for winter shopping; beverages and tobacco increased by 0.21%; housing and construction materials increased by 0.19% due to gas prices and a high demand in housing repair from the last month; and equipment and household appliances increased by 0.08%.

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The groups of remaining goods and services decreased, including: Traffic fell by 0.89%; restaurant and food services fell by 0.03%, with an increase in food of 0.22% and a decrease in agricultural products of 0.12%; telematics fell by 0.03%; and culture, recreation and tourism services fell by 0.02%. The price of education group remained unchanged from the previous month.