Inflationary pressure still present: GSO official

A shopper at Hanoi's Aeon Mall Long Bien. (Photo: VNA)

Hanoi (VNA) – The average consumer price index (CPI) in thefirst four months of this year inched up 0.89 percent from the same period lastyear, the lowest rise for the first four months of a year since 2016 and clearingthe way for the country to achieve its goal of keeping inflation at below 4percent for the year as a whole, according to an official from the GeneralStatistics Office (GSO).

“However, we should not be too optimistic about this since inflationarypressure remains and is likely to build up in the months to come,” GSO DeputyDirector General Nguyen Trung Tien told the Vietnam News Agency.

The CPI, he said, will tick up on account of the global economy’spositive outlook, as noted by international organisations, and rising globalCOVID-19 vaccination rates.

In Vietnam, domestic businesses are becoming more adaptive to the “newnormal”, with the gradual revival of production, trade, and services andgrowing demand for capital, fuel, and materials. This will drive up prices andadd pressure to overall inflation, he explained.

Increases in the global prices of fuel and materials is another factor behindrising domestic prices, he continued, citing the fact that the average Brentcrude price in the first four months increased nearly 24 percent compared tothe end of last year and over 49 percent year-on-year.

The average price for Brent crude in 2021 is forecast to reach 60 USDper barrel, up about 40 percent compared to 2020, which is likely to push up domesticfuel prices by roughly 25 percent, adding 0.9 percentage points to the CPI.

He urged authorities not to loosen inflation control measures, sayingthey should maintain a close watch on local supply and demand and the price ofessential goods, and take proactive and timely action. The Ministries ofIndustry and Trade and Finance, meanwhile, must effectively use the petrolprice stabilisation fund to minimise the impact of fuel on overall CPI, headded.

“We believe the inflation target of around 4 percent, set by theNational Assembly, is attainable,” Tien affirmed.

He further noted that International Monetary Fund (IMF) experts havebeen sent to Vietnam annually to review and assess sources of data, methods,and representative items Vietnam uses to calculate the CPI. Vietnam’s CPI hasbeen used in reports from other international organisations, such as the UNStatistics Division (UNSD), the World Bank (WB), and the Asian Development Bank(ADB), and the method the country uses to calculate the index is regarded as beingin line with international practices./.

VNA