Vietnam 2019 inflation projected to stay below 4% target
Both scenarios for inflation in 2019 presented by the government indicate inflation will be in the range of 3.17 – 3.41%.
Vietnam’s inflation is projected to be 3.41% in 2019, much lower than the government target of 4%, according to Deputy Prime Minister Vuong Dinh Hue.
The public services fees, therefore, should be adjusted in parallel, Hue said in a government meeting on July 3.
Vietnam’s consumer price index, a gauge of inflation, declined 0.09% month-on-month in June, leading to the expansion of the average CPI in the six-month period at 2.64% year-on-year, the lowest rate recorded over the past three years, said Nguyen Bich Lam, head of the General Statistics Office.
Nguyen Van Truyen, deputy director of the Ministry of Finance’s Price Management Department, attributed the low expansion of CPI in the January – June period to a decline in prices of food, fuel and telecommunication services, among others.
Additionally, government agencies have been closely supervising prices of centrally-administered goods and services, ensuring the balance between supply and demand, Truyen added.
The government forecast prices for certain goods could be on the way up from now on until the end of the year, mainly due to strong volatility of oil prices in the world market; price adjustment for goods and services under state management, including healthcare and education, based on market mechanism; wage increase; natural disaster and unfavorable weather conditions.
On the contrary, there remain factors that could relieve pressure on price increase, including the potential decline in rice prices in the world market, stable prices of construction materials, and consistent foreign exchange policy.
Truyen suggested two scenarios for inflation rate in 2019, both are in range of 3.17 – 3.41%, compared to the target of 3.3 – 3.9% set in the previous meeting.
Under such circumstances, goods and services under state management could be subject to further price upward adjustment in the fourth quarter of 2019, Truyen continued.
Overview of the meeting. Source: VGP.
|
Vietnam’s consumer price index, a gauge of inflation, declined 0.09% month-on-month in June, leading to the expansion of the average CPI in the six-month period at 2.64% year-on-year, the lowest rate recorded over the past three years, said Nguyen Bich Lam, head of the General Statistics Office.
Nguyen Van Truyen, deputy director of the Ministry of Finance’s Price Management Department, attributed the low expansion of CPI in the January – June period to a decline in prices of food, fuel and telecommunication services, among others.
Additionally, government agencies have been closely supervising prices of centrally-administered goods and services, ensuring the balance between supply and demand, Truyen added.
The government forecast prices for certain goods could be on the way up from now on until the end of the year, mainly due to strong volatility of oil prices in the world market; price adjustment for goods and services under state management, including healthcare and education, based on market mechanism; wage increase; natural disaster and unfavorable weather conditions.
On the contrary, there remain factors that could relieve pressure on price increase, including the potential decline in rice prices in the world market, stable prices of construction materials, and consistent foreign exchange policy.
Truyen suggested two scenarios for inflation rate in 2019, both are in range of 3.17 – 3.41%, compared to the target of 3.3 – 3.9% set in the previous meeting.
Under such circumstances, goods and services under state management could be subject to further price upward adjustment in the fourth quarter of 2019, Truyen continued.
21:14, 2024/10/31
Vietnam, Brazil: Building bridges through shared history and new partnerships
Vietnam and Brazil are forging a future of mutual development, bridging continents through their shared history and new partnerships.
16:54, 2024/10/29
Hanoi to attract tourists by showcasing local specialties at wholesale markets
Hanoi aims to enhance supervision of food safety and traceability, along with promoting cashless transactions.
16:28, 2024/10/27
National E-commerce Week, Vietnam Online Shopping Day 2024 set to kick off
This year's event will focus on celebrating and raising the status of Vietnamese products, according to the Ministry of Industry and Trade.
18:39, 2024/10/21
Vietnamese goods in rising demand among Hanoi residents
The domestic market, estimated to be worth US$180 billion and projected to grow to US$350 billion by 2025, presents an opportunity for Vietnamese goods to gain a foothold domestically.
06:23, 2024/09/27
Hanoi unveils 2024 rural industrial plans
Hanoi is expected to organize 60 major trade promotion events this year, including one-sixth abroad.
06:17, 2024/09/27
Hanoi advances supporting industries for hi-tech services
The global commercial aviation market is expected to grow at an annual rate of about 5%, with Vietnam ranking 5th globally and 1st in Southeast Asia in aviation market growth.
- Vietnam’s economy remains resilient amid global uncertainties: ADB
- Vietnam’s 9-month fruit and veggie exports match last year's sales
- Growing interest from Chinese investors in Vietnam’s market
- Hanoi Supporting Industry Fair 2024 draws big business
- Vietnam’s businesses urged to get ready for CBAM
- Global tech giants pay US$252 million in taxes in Jan-Aug in Vietnam