Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Vietnam looks to maintain Consumer Price Index (CPI)growth lower than 1 percent a month during the last quarter of 2021 in aneffort to keep inflation under the 4 percent target for the year, heard arecent meeting between Deputy Prime Minister Le Minh Khai and the NationalPricing Management Committee in Hanoi.
Accordingto the committee, keeping the figure lower than 4 percent by the end of theyear is important so the country can have a good start to 2022, especially inlight of Vietnam's dual-target strategy of achieving COVID-19 containment andeconomic development simultaneously.
CPI,however, has always been tricky during this time of the year as the market willlikely experience surges in demand for certain commodities during the end ofthe year. This has been made more challenging a task since the fourthoutbreak of the novel coronavirus, which started in late April and until nowhas not been put completely under control.
Thecommittee has asked the Ministry of Finance to implement more flexible monetarypolicies and make adjustments to some macroeconomics targets in response to thepandemic. Local administrations must keep an eye on the market's supply anddemand of essential commodities and ensure a smooth flow of goods and services,especially for localities that have been put under lockdown.
Businesseshave been advised to start preparing for the Lunar New Year by stocking up onpopular goods. Market surveillance agencies across the country have been toldto turn in reports to the central government as well as to ensure businessesunder their watch must publicise their prices in a transparent manner.
CPIfor the first seven months of 2021 has increased by 1.64 percent compared tothe same period last year while inflation has increased by 0.89 percent.
Majorcontributing factors included rising import prices for animal feed, fertiliser,construction materials, petroleum products and Liquefied Petroleum Gas (LPG).According to a report by the Ministry of Industry and Trade, since the end oflast year prices for WTI crude oil increased by 53.1 percent, Brent crude oilby 46.2 percent and steel ingots by 57-101 percent.
Pricesfor certain essential commodities such as rice have also seen a surge due toincreased demand in the global market since the beginning of the year. On theother hand, some progress has been made in pulling down prices for pork andpoultry in the domestic market./.
VNA
