Experts have high hopes for inflation scenarios

The 2019 average inflation set to increase by 3.17 - 3.41 per cent would yield a number of positive effects on the country’s macro-economic stability, experts have said.
experts have high hopes for inflation scenarios

Illustrative photo. (Source: VOV)

According to the General Statistic Office of Vietnam, consumer price index (CPI) for the first half of the year upped by 2.64 per cent, the lowest rate seen during the past three years and at an inconsiderable high against with the inflation ratio of 1.87 per cent seen during the six-month period.

The CPI indicator would facilitate the implementation of macro-economic stability and inflation control.

The Government’s Steering Committee on Price Management has sketched out two scenarios for the inflation rate during the remainder of the year, which is predicted to stretch between 3.17 to 3.41 per cent.

Nguyen Ba Minh, head of the Economics and Finance Institute under the Academy of Finance, said food prices are set to soar during the remaining months of the year, while the price of pork could skyrocket due to supply shortages stricken by the ongoing African swine fever.

The monthly basic salary for civil servants, public employees, and those working in the armed forces rose from VND1.39 million (US$59.77) to VND1.49 million (US$64.07) as of July 1. This puts additional pressures on CPI. Another threat to CPI comes from the increasing prices of materials worldwide.

However, the continued sluggish export of farm produce along with its subsequent slowdown in domestic consumption would help narrow CPI growth, Minh noted.

A wide range of measures could be taken to stabilize commodity prices, regulate the monetary policy for macro-economic stability, and curb inflation; all of which would aid in the control of CPI growth, the expert added.

Ngo Tri Long, former head of the Price and Market Research Institute under the Ministry of Finance, said that in order to curb CPI within the projected limit of 4 per cent for this year, more efforts should be exerted to tighten controls on inflation and ensure the effective implementation of macro-economic stability goals.

Inflation control should keep up with market rules instead of following rigid administrative decisions. The price adjustment of an essential commodity must be scrutinized to minimize spillover effects on other goods, Long noted.

The prices of petrol and oil in particular must be adjusted in line with the national petroleum price stabilization fund and its proper scenarios outlined in response to price hikes.

A closer watch should be made into the price of construction materials and properties along with the supply, demand, and price of properties in major urban areas, in order to put forth measures on stabilizing the domestic market.

Source: VNA

Related News

Vietnam gears up for potential inflation impact in 2025

Vietnam gears up for potential inflation impact in 2025

VCN - For sound price management and inflation control, Deputy Prime Minister Ho Duc Phoc directed officials to vigilantly track both domestic and international market dynamics. The goal is to proactively develop flexible strategies and solutions, enabling a swift response to any emerging challenges.
Managing price effectively, reducing pressure on inflation

Managing price effectively, reducing pressure on inflation

VCN - Timely and effective price management helps control the consumer price index (CPI) and inflation in accordance with the set target.
WB expert: It is not necessary to iment a loose fiscal policy

WB expert: It is not necessary to iment a loose fiscal policy

VCN - According to experts from the World Bank (WB), to maintain growth momentum, it is necessary to continue institutional reform, promote public investment, and at the same time manage and monitor risks in the financial market.
The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Therefore, it can be expected that the rate of price increases in the last 6 months will be comparable to that in the first 6 months of 2024.

Latest News

15th National Assembly concludes ninth extraordinary session

15th National Assembly concludes ninth extraordinary session

NA Chairman Trần Thanh Mẫn highlighted this session as a significant milestone in legislative development, playing a crucial role in streamlining the political system.
Party chief requests priority for sci-tech development, digital transformation

Party chief requests priority for sci-tech development, digital transformation

The Party chief asked for prompt amendments to the Law on Science and Technology, followed by revisions to other laws to ensure consistency and alignment with practical requirements.
Monetary policy is a key factor for economic stability and growth

Monetary policy is a key factor for economic stability and growth

VCN – Vietnam’s economy is forecast to grow by 6.7% in 2025, Standard Chartered Bank reported.
Việt Nam commits to being safe, attractive destination for investors

Việt Nam commits to being safe, attractive destination for investors

The Deputy Prime Minister said from an underdeveloped economy, devastated by war, Việt Nam has risen to become the 33rd largest economy in the world with the size of the economy increasing about 60 times compared to the period before renewal.

More News

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Positive economy growth forecast in 2025, but caution remains

Positive economy growth forecast in 2025, but caution remains

Growth is expected to moderate from 7.5 per cent year-on-year in H1 to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment.
Labour market to see changes in key industries

Labour market to see changes in key industries

It is anticipated that the technology, renewable energy and logistics sectors would continue to expand rapidly in 2025.
Prime Minister warns of possible global trade war, pushes for preparation

Prime Minister warns of possible global trade war, pushes for preparation

The Government leader warns of a possibility of a trade war that may disrupt the global supply chain.
Positive economic indicators recorded in early 2025: Gov

Positive economic indicators recorded in early 2025: Gov't spokesperson

Trade remained smooth, with total import-export turnover estimated at $63.15 billion, down 10.5 per cent from the previous month and 3.5 per cent year-on-year.
General Secretary urges immediate return to work after Tết

General Secretary urges immediate return to work after Tết

Party General Secretary Tô Lâm praised efforts to ensure a well-organised holiday, but stressed the need for authorities and businesses to return to work promptly. He warned against extended celebrations and called for full focus on meeting February and first-quarter deadlines.
Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

PM Phạm Minh Chính expressed his hope for continued support from the Party Central Committee, its Politburo and Secretariat, current and former leaders, the National Asembly, and the Việt Nam Fatherland Front for the Government to fulfil its tasks, creating momentum for the whole country to make development breakthrough and enter the era of the nation’s rise.
Việt Nam’s manufacturing PMI slips into contraction in January

Việt Nam’s manufacturing PMI slips into contraction in January

Business conditions in the Vietnamese manufacturing sector weakened in the first month of 2025 with drops in both output and new orders.
Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

The past 95 years have formed a glorious and pride-worthy period for the Vietnamese people as they have gradually eliminated poverty and backwardness, steadily moving towards a wealthier and happier future.
Read More

Your care

Latest Most read
15th National Assembly concludes ninth extraordinary session

15th National Assembly concludes ninth extraordinary session

NA Chairman Trần Thanh Mẫn highlighted this session as a significant milestone in legislative development, playing a crucial role in streamlining the political system.
Party chief requests priority for sci-tech development, digital transformation

Party chief requests priority for sci-tech development, digital transformation

The Party chief asked for prompt amendments to the Law on Science and Technology, followed by revisions to other laws to ensure consistency and alignment with practical requirements.
Monetary policy is a key factor for economic stability and growth

Monetary policy is a key factor for economic stability and growth

VCN - Standard Chartered's report also forecasts Vietnam's economic growth at 7.5% in the first half of the year and at 6.1% in the second half of the year compared to the same period last year.
Việt Nam commits to being safe, attractive destination for investors

Việt Nam commits to being safe, attractive destination for investors

The Deputy Prime Minister said from an underdeveloped economy, devastated by war, Việt Nam has risen to become the 33rd largest economy in the world with the size of the economy increasing about 60 times compared to the period before renewal.
Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Mobile Version