CPI unlikely to cause economic chaos in short term

Some economic analysts have remarked that the Consumer Price Index (CPI) remains fairly stable and is unlikely to create any problems in the near future.

They predict that prices will not rise to a level that could lead to possible sudden changes. The CPI continuously easing off over the past four months has alleviated worries over inflation.

The General Statistics Office confirms July’s CPI at 0.06 percent, the lowest level since March 2009 and for the same month since 2004.

CPI began to slow down in May from a 0.27 percent rise over April to 0.22 percent in June. This means its average monthly rise is just 0.3 percent, offering more scope for implementing macroeconomic policies to ensure the economy reaches a growth rate of 6.5 percent this year.

Economists say if the CPI continues to fall in the months to come, it will facilitate the issuing of bonds and the adjustment of monetary and fiscal policies.

vov

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