Official Highlights Year-End CPI Risks | Company

In a recent interview with Vietnam News Agency, Huong said that amid inflation in many countries around the world due to the protracted conflict between Russia and Ukraine, the Covid-19 pandemic and the disrupted supply chain, the Vietnamese government has taken drastic measures to reduce gasoline prices, stabilize electricity and water prices and school fees, and maintain interest rates reasonable. As a result, inflation was held at 2.58% for eight months of this year, easing pressure on input costs.

The government, ministries and agencies have instructed localities to manage prices while a number of enterprises have actively joined the price stabilization program to ensure people’s supply of basic necessities, especially in food.

Highlighting the risks that could potentially impact the CPI over the rest of this year and into next, Huong said global material prices remain high, which could push up consumer product prices in the countries, thereby putting pressure on inflation.

Fuel prices are also expected to rise again due to the complicated conflict between Russia and Ukraine and rising energy demand in China as its economy recovers from the pandemic.

At the same time, the supply of fertilizers and cereals used for the production of animal feed is decreasing, which could lead to higher food prices.

Meanwhile, consumer demand is expected to rebound, especially tourism, entertainment and catering, she said.

According to her, the GSO suggested that ministries, agencies and localities fully prepare for food and necessities to meet public demand.

The Ministry of Agriculture and Rural Development must ensure the supply of pork, especially at the end of the year, while the Ministry of Industry and Trade and localities must stabilize its prices.

Home fuel supplies should also be guaranteed and the reduction of value added and special consumption taxes should be considered in the event of a rebound in global fuel prices.

The GSO has also proposed boosting the production of other important inputs such as iron and steel, building materials and animal feed.

The State Bank of Vietnam (SBV) was advised to continue to pursue an active and flexible monetary policy and to combine it with fiscal and macroeconomic policies to control inflation and ensure the supply of capital to the economy, she said.