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September inflation set for small rise
Inflation is unlikely to increase sharply in September despite some factors likely to exert upward pressure on the index.
Recent estimates indicated that the consumer price index (CPI) this month would record a month-on-month increase of one per cent.
However, official sources said that a CPI increase of one per cent was unlikely because price rises in some essential goods were less than previously estimated.
The Ministry of Industry and Trade's Domestic Market Management Team expected September's CPI to increase by just 0.3-0.4 per cent against August.
Crude oil registered a slight reduction, but many other essential goods continued to increase in price, including sugar, fertiliser, food and catering services, animal feed, milk, medicines, consumer goods and steel ingots.
So far this month, rice prices had increased by VND1,000 per kilo in the first week but saw a slight reduction of VND200-300 per kilo in the second week.
With the onset of the rainy season, food prices would increase in some places which had experienced heavy rain, storms and flood, said the team.
An increase in the interbank rate early this month had also pushed prices of imported products up, so a future rise in the CPI could be possible.
The new school year started in September, and increased school fees saw educational products and related services rise.
However, the prices would have little effect on the CPI because this spending accounted for only 5.72 per cent of total household expenditure, constituting the CPI.
Meanwhile, recent sharp increases in the price of gold and US dollar would not affect the CPI this month, as the index excluded the prices of those products, the team said.
The team believed many factors would lead to an increased CPI, but the rise would not be sharp due to the Government's effective policies on curbing inflation.
VietNamNews
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