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Hard to keep July CPI below 1pct: Ministry
It is a daunting task to keep July consumer price index (CPI) under 1 percent since domestic market is under great pressure from surging food and vegetable prices, said Nguyen Loc An, Deputy Director of Domestic Market Department under the Ministry of Industry and Trade.
By the same time, Price Management Department under the Ministry of Finance, told the media that the global spiraling trend in prices of raw materials and commodities, such as sugar, urea, rice, oil, in the first half of this month makes it hard to curb domestic CPI.
Prices of fresh food items like meat and vegetables rose sharply month on month. The price of pork in the northern region has peaked to VND110,000-115,000 a kg, up VND20,000-25,000 compared to the same period in June.
Food items account for 40 percent of Vietnam’s CPI calculation.
But “up to 60 percent of households in Vietnam spend up to 60 percent of their income on foods,” Thoi Bao Kinh Te Sai Gon newspaper quoted Vu Vinh Phu, chairman of the Hanoi Supermarket Association, citing data from the General Statistics Office.
This means that the majority of our population is still poor and affected by inflation, he added.
Although the prices of food, food, fruits and vegetables have risen very sharply within the recent month, they seem to go up in the future.
Nguyen Thi Thuy Nga, Deputy Director of Price Management Department, said the rise was caused by price increases of animal feed, which shot up 30-40 percent over the same period in 2010 in H1/2011.
Moreover, capitals for livestock raisers were limited because of sky-high interest rates, she said.
July CPI in Hanoi has just been posted at 1.32 percent, the highest month-on-month increase of July in the last three years, according to the municipal Statistic Office.
The rise drove the capital city’s CPI this year to 21.52 percent.
Although the price of food has retreated by 1.96 percent month on month, the hike of foodstuff and catering services, 3.74 and 2.73 percent, has lifted up the whole group.
Ho Chi Minh City’s CPI in July rose by 1.07 percent against June, bringing the country’s CPI to 13.36 percent this year - a 17.89 percent rise year on year, according to the city’s Statistics Department.
Of the 11 commodity groups, only the price of posts and telecommunications services saw a month-on-month decline of 0.01 percent.
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