Pressure mounts to control inflation in 2020

Managing prices and inflation would be more complex and difficult this year
pressure mounts to control inflation in 2020

Price management and inflation control would be more complex and difficult this year (Photo: VNA)

The fluctuating price of pork last year had significant impacts on the market, as the price plummeted in the first half of the year then soared in the second half.

The pork price dropped from 46,000-50,000 VND (2-2.2 USD) per kilogramme to a record low of 28,000 - 32,000 VND (1.21-1.38 VND) per kilogramme in the first six months of last year.

After that, the price increased gradually from July and soared from October with an increase of about 60 – 80 percent compared to September and 60 – 95 percent compared to the beginning of last year.

Prices of pork products are currently very high with the live pig price ranging between 80,000 - 90,000 VND per kilogramme and pork at 160,000 - 180,000 VND per kilogramme.

After the shock of the pork price increasing by more than 50 percent in the fourth quarter of last year, curbing inflation below 4 percent this year was no longer certain when the consumer price index (CPI) of last December increased by 5.23 percent year-on-year, the highest level in the last nine years, Nguyen Duc Do, deputy director of the Institute of Economics - Finance, told Kinh te & Do thi (Economic and Urban Affairs).

The expert said if pork prices fell sharply around Tet (Lunar New Year), average inflation might be only at 3 percent this year.

However, if pork prices remained at their current high levels in the first quarter, average inflation could be about 3.5 percent.

In a worst-case scenario where African swine fever doesn't end in the first half of this year and inflation over the same period last year only starts to decline from the middle of this year, keeping inflation below 4 percent would be relatively difficult, he said.

Assuming other factors affecting inflation such as oil prices, exchange rates, medical services and education did not change significantly, Do predicted that inflation would increase by 3.5 percent on average this year.

As the price of some commodities such as petrol might rise due to world economic and political instability, experts said inflation would be complicated and unpredictable.

A representative from the Ministry of Finance's Price Management Department stated that the price of some items might see an upward trend.

Specifically, gasoline prices might increase slightly. The price of pork, due to the impact of African swine fever, was still a complex matter. The domestic pork supply is declining, and breeding has not been effective, therefore, the price was expected to continue to increase in the first months of this year, the representative said.

At the same time, health service prices were expected to be affected by the adjustment of management cost and basic salary.

The price in education services also looks set to continue to increase this year.

Regarding electricity prices, although is no plan for an increase this year, the demand for electricity was still high for production and consumption, which would increase CPI.

In addition, the prices of food, beverages and garments might increase at the beginning and end of the year due to shopping needs during the holidays.

To achieve the National Assembly's goal of keeping inflation under 4 percent this year, the department said price management and inflation control this year must be implemented prudently, flexibly and proactively.

The Ministry of Finance would continue to work with relevant agencies to control market prices, especially during Tet and the first months of the year.

Source: VNA

Related News

The exchange rate is heated up: Need flexible regulation to control inflation

The exchange rate is heated up: Need flexible regulation to control inflation

The exchange rate has been increasing sharply since the beginning of the year until now, despite the context that foreign currency liquidity is still abundant thanks to positive indicators of trade and investment. However, the impact on the entire market and inflation control is not great.
Regulating prices and controlling inflation in the "variables"

Regulating prices and controlling inflation in the "variables"

VCN - Unpredictable developments will certainly have a major impact on the price market as well as domestic inflation control in 2024. Therefore, successful results and solutions from 2023 will be a "pedestal" for 2024.
Proposing to have information sharing mechanism in price management

Proposing to have information sharing mechanism in price management

VCN - In the draft Decree detailing and implementing measures for a number of articles of the 2023 Price Law, the Ministry of Finance has proposed many specific tasks for price stabilization as well as market price analysis and forecasting.
Pressure on price level remains, it is necessary to be proactive and flexible in management plans

Pressure on price level remains, it is necessary to be proactive and flexible in management plans

VCN - To carry out the set tasks, the Ministry of Finance said that price management in 2024 needs to ensure good control of inflation, while continuing to removing difficulties for production and business and people's lives.

Latest News

Standard Chartered revises down Vietnam’s  GDP growth forecast in 2024 to 6%

Standard Chartered revises down Vietnam’s GDP growth forecast in 2024 to 6%

Standard Chartered Bank has lowered Vietnam’s GDP growth forecast in 2024 to 6% from the previous 6.7% due to lower-than-expected Q1 growth and global trade headwinds.
Investor confidence gains traction on improved business climate

Investor confidence gains traction on improved business climate

Better investment climate, with simplified administrative producers and special incentives, has helped improve investor confidence, thus catalysing investments from a wider pool of both domestic and international investors for socio-economic development.
Vietnam

Vietnam's exports to Canada lead among CPTPP countries

VCN - Ms. Tran Thu Quynh, Commercial Counselor, Vietnam Trade Office in Canada shared with Customs Magazine about the picture of Vietnamese goods in Canada with a lot of potential that can be further exploited, and recommendations for businesses, along with activities deployed by the Trade Department to support businesses to conquer this attractive "billion dollar" market.
Many new regulations aim to drastically remove the IUU "Yellow Card"

Many new regulations aim to drastically remove the IUU "Yellow Card"

VCN - Many new regulations against illegal, unreported, unregulated (IUU) fishing have been issued to help Vietnam complete the legal framework and soon remove the IUU "Yellow Card" in 2024.

More News

PM chairs meeting of national committee for digital transformation

PM chairs meeting of national committee for digital transformation

Prime Minister Pham Minh Chinh chaired the eighth meeting of the National Committee for Digital Transformation on April 24, which aims to assess digital transformation efforts and development of the digital economy in recent times and discuss tasks and solutions for accelerating the work in 2024.
Seize the golden opportunity as retail giants look for supplies in Vietnam

Seize the golden opportunity as retail giants look for supplies in Vietnam

VCN - The world's leading purchasing and retail corporations all plan to increase the purchasing of goods in Vietnam. However, Vietnamese businesses still need to improve many factors to be able to grasp this opportunity.
Government’s action programme cracks down on illegal fishing

Government’s action programme cracks down on illegal fishing

A raft of measures to deal with illegal, unreported and unregulated (IUU) fishing is included in the Government’s freshly issued action programme as the country is striving to clamp down on illegal fishing, or else it will be hit by the European Commission (EC)’s warning card.
PM calls on ASEAN to pen strategic development vision

PM calls on ASEAN to pen strategic development vision

The Association of Southeast Asian Nations (ASEAN) should have a strategic and comprehensive vision, and improve its resilience capacity to grasp opportunities and handle global headwinds for stable and sustainable development, Prime Minister Pham Minh Chinh said on April 23.
Forum to discuss new initiatives on ASEAN future vision: Deputy FM

Forum to discuss new initiatives on ASEAN future vision: Deputy FM

The ASEAN Future Forum 2024 (AFF 2024), which will take place in Hanoi on April 23, is expected to create a platform for stakeholders to contribute ideas and initiatives on the Association of Southeast Asian Nations (ASEAN)’s future vision, Vietnamese Deputy Minister of Foreign Affairs Do Hung Viet has said.
Investors play a key role in developing the industrial park system

Investors play a key role in developing the industrial park system

VCN - Dr. Phan Huu Thang, Chairman of the Executive Committee of the Vietnam Industrial Park Finance Association, former Director of the Foreign Investment Department (Ministry of Planning and Investment), said that basically, developing an industrial park successfully or not mainly depends on businesses, entrepreneurs - industrial park investors.
Green transformation and ESG practice to participate in the global competition

Green transformation and ESG practice to participate in the global competition

VCN - Vietnam is in a transition period from encouraging to mandating green and sustainable criteria so as not to fall behind or be excluded from the green transformation trend that is taking place strongly around the world.
Factors influencing Vietnam’s FMCG market

Factors influencing Vietnam’s FMCG market

Economic outlook, demographic transformation and changing consumer trends are among macro shifts reshaping Vietnam’s fast-moving consumer goods (FMCG) landscape, according to marketing data and analytics company Kantar Worldpanel.
Shrimp exports to major markets bounce back

Shrimp exports to major markets bounce back

Having identified its weakness in 2023, entering the first quarter of 2024, Vietnam's shrimp industry has undergone a clear change, reflected through increases in exports to major markets.
Read More

Your care

Latest Most read
Standard Chartered revises down Vietnam’s  GDP growth forecast in 2024 to 6%

Standard Chartered revises down Vietnam’s GDP growth forecast in 2024 to 6%

Standard Chartered Bank has lowered Vietnam’s GDP growth forecast in 2024 to 6% from the previous 6.7% due to lower-than-expected Q1 growth and global trade headwinds.
Investor confidence gains traction on improved business climate

Investor confidence gains traction on improved business climate

Better investment climate, with simplified administrative producers and special incentives, has helped improve investor confidence, thus catalysing investments from a wider pool of both domestic and international investors for socio-economic development.
Vietnam

Vietnam's exports to Canada lead among CPTPP countries

VCN - Ms. Tran Thu Quynh, Commercial Counselor, Vietnam Trade Office in Canada shared with Customs Magazine about the picture of Vietnamese goods in Canada with a lot of potential that can be further exploited, and recommendations for businesses, along wi
Many new regulations aim to drastically remove the IUU "Yellow Card"

Many new regulations aim to drastically remove the IUU "Yellow Card"

VCN - Many new regulations against illegal, unreported, unregulated (IUU) fishing have been issued to help Vietnam complete the legal framework and soon remove the IUU "Yellow Card" in 2024.
PM chairs meeting of national committee for digital transformation

PM chairs meeting of national committee for digital transformation

Prime Minister Pham Minh Chinh chaired the eighth meeting of the National Committee for Digital Transformation on April 24, which aims to assess digital transformation efforts and development of the digital economy in recent times and discuss tasks and solutions for accelerating the work in 2024.
Mobile Version