|
CPI slowdown forecast
The Consumer Price Index (CPI) in June is likely to slow down to 1 percent in June, say economists. The 2.21 percent CPI increase in May, much lower than April figure of 3.32 percent, indicates the effectiveness of the government’s measures to curb inflation, stabilize the macroeconomy, and ensure social welfare as mentioned in resolution No.11.
Economist Vu Dinh Anh says the CPI slow down in May was a positive sign for Vietnam to expect a slighter increase in the future.
Anh attributes the stabilised prices of goods to falling prices and increasing supplies of products in the world market and the State’s decision to stabilize essential products such as electricity, coal, and petrol.
In addition, the balance of supply and demand will also help stabilise prices of goods in June, despite other factors that could cause price hikes, he says.
For example, the world’s leading rice exporters such as Vietnam and Thailand have had a bumper crop, so rice prices are decreasing, in both domestic and world markets.
Meanwhile, the price of steel is also dropping due to the increasing supply of steel and falling price of steel ingot.
Economist Ngo Tri Long says although the CPI in May was lower than in April, it was much higher than in the previous months. Therefore, Vietnam should continue implementing its measures to curb inflation.
Vietnam should always be concerned about inflation because it is higher in Vietnam compared to other countries, Long says, warning that even a monthly 1 percent CPI increase may still affect the country’s target to curb inflation.
According to the Domestic Market Management Unit, global economic growth and the increasing prices of some materials on the world market will also cause a slight rise of prices in the domestic market.
vov
|
