Keeping commodity prices stable, ensuring inflation control

The management and administration of prices in the remaining months of 2021 and in the beginning of 2022 should continue to be done cautiously. Photo: Thu Dịu

Inflation control in 2021 is guaranteed to be under control

Speaking at the opening of the meeting, Deputy Prime Minister Le Minh Khai emphasized that the country's economy had been heavily affected by the Covid-19 pandemic. The Party, State and Government issued many documents directing and implementing measures to ensure the production and circulation of goods, including the management and administration of prices.

When the pandemic is controlled, they would expand production, loosen fiscal and monetary policies, increase demand for strategic products, and increase inflation. Therefore, price management in the fourth quarter of 2021 is very important.

Presenting the report at the meeting, Deputy Minister of Finance Ta Anh Tuan (permanent member of the Steering Committee) said that the market price level in the first ten months of 2021 was basically under control as proposed in the price management scenario at the beginning of the year.

Compared to the same period last year, September CPI increased by 2.06%; average CPI in the first 9 months of 2021 increased by 1.82% over the same period last year – the lowest increase since 2016; core inflation in nine months increased by 0.88%. CPI in October 2021 is estimated to decrease by 0.1-0.15%; the 10-month average is estimated to increase by 1.81-1.83% over the same period last year.

In general, since the beginning of the year, the market price level has increased and decreased, some products had experienced a high rate due to the impact of domestic supply and demand factors and world prices.

According to the leaders of the Ministry of Finance, there were several reasons causing pressure on the price level such as: some essential commodities suffered price fluctuations due to the influence of input material costs, increased logistics costs; animal feed, fertilizer, building materials; domestic gasoline and liquefied petroleum gas (LPG) prices due to the impact of a sharp increase in world prices when global demand rises.

The Deputy Minister of Finance affirmed that inflation control in 2021 will be under the control of the Government and the Steering Committee for Price Management and at a low level.

However, inflation pressure in 2022 will be very great, especially if the energy crisis becomes serious, the tendency of speculation and hoarding of strategic products of some countries affects the world economy and the country.

Accordingly, the management and administration of prices in the remaining months of 2021 and in the beginning of 2022 should continue to be done cautiously, flexibly and proactively, focusing on controlling inflation in line with the target and supporting the Government's dual goals, thereby both keeping the price level stable to remove difficulties for production, business and people's lives, ensuring conditions for virus prevention and control. The pandemic has also supported economic growth.

The Ministry of Finance must complete solution system

Speaking at the meeting, representatives of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Ministry of Health, the Ministry of Education and Training, the Ministry of Construction, the Ministry of Natural Resources and Environment, the General Statistics Office, the Ministry of Accounting Planning and Investment agreed that the pressure on price management in 2022 was huge. Therefore, it was necessary to focus on the prevention and control of the Covid-19 pandemic, ensuring safety and security; promoting production and business, restoring the domestic market, ensuring the circulation of goods, connecting supply and demand; consolidating and developing the retail system; regularly update, publicize, and strengthen inspection and examination to promptly correct inadequacies, strictly handle cases of price violations.

Deputy Prime Minister Le Minh Khai said that from now until the end of the year, the average CPI was expected to increase by about 2%. Thus, the inflation-control target assigned by the National Assembly and the Government in 2021 was not under heavy pressure, so the possibility of achieving the target was very high.

According to the Deputy Prime Minister, by 2022, many countries had begun to open their doors and restore production, the demand for raw materials and energy had increased. Domestically, although we have well-controlled the outbreak, the evolution of the Covid-19 pandemic still has many potential risks, causing difficulties for production, supply and circulation of goods.

Therefore, from now until the end of the year, the Deputy Prime Minister directed the ministries and sectors to focus, based on the functions, tasks and powers of the agency and the tasks of each member of the Steering Committee to grasp the situation, closely monitor developments, operate in accordance with the provisions of the law, proactively take appropriate, effective and timely solutions.

Regarding solutions for the last months of 2021 and 2022, the Deputy Prime Minister asked the Ministry of Finance to listen to the opinions and statements of ministries and sectors to perfect a system of solutions close to the situation and practical conditions in the country, guarantee feasibility. The Ministry of Foreign Affairs should coordinate with the Ministry of Finance, the Ministry of Planning and Investment, and the State Bank to closely monitor developments in the world situation, the general inflation of countries, and developments in large export and import markets of Vietnam in order to proactively issue appropriate solutions.

Ministries, sectors and localities need to closely monitor the supply and demand of the market of important and essential commodities to prepare reserves and stabilize prices, especially in the last months of the year and the Lunar New Year and early months of 2022.

Those activities the Steering Committee for Price Management had done every year, but this year is characterized by the economy that is being heavily affected by the pandemic, so it is necessary to pay special attention to organizing the task of reasonable reserves and stabilization.

The Deputy Prime Minister asked to keep the prices of goods that were imposed by the State, close to the situation, ensure the control of general inflation, and contribute to supporting businesses and people.

For the prices of public services implemented following the provisions of Decree 60/2021/ND-CP stipulating the financial autonomy mechanism of public non-business units, the Ministry of Health, the Ministry of Education and Training and a number of other ministries and sectors were asked to fully prepare conditions and foundations for implementation. The Ministry of Health needed to focus on implementing tasks related to price management of medical examination and treatment services.

The Ministry of Finance and the State Bank continue to actively coordinate and harmonize fiscal policy with monetary policy, in association with the program of economic recovery and development.

The Deputy Prime Minister also suggested that ministries and sectors should base on their functions and tasks to focus on managing and operating flexibly and effectively in terms of prices for essential commodities such as petrol and oil; electricity; food; fertilizers and animal feed; medicines and biological products and medical supplies.