CPI drop shows effectiveness in macro-economic monitoring

The decline of the consumer price index (CPI) in September is a positive outcome of the managing of the macro-economy by the Government as the Asian Development Bank has recently raised its forecast on Vietnam’s economic growth in 2015 to 6.5%.

 

 

September’s CPI normally rises sharply as the new academic year begins. However, the index in the education category slightly increased in September thanks to the decrease of petrol prices, stabilised food supply and effective price control. The low CPI is creating stimulus for policies encouraging production and trade and helping to calculate prices of several products managed by the State.

 

Since 2012, with the Government’s target of stabilising the macro-economy and curbing inflation, the State Bank has adjusted monetary policies proactively and flexibly, thus inflation tended to decline and become stable. Over the past nine months, inflation merely rose by 2.15% year on year. The monetary policy is monitored in accordance with core inflation, which is currently at 2-3%, helping stabilise the macro-economy and maintain a sustainable economic growth.

 

From now until the end of the year, the CPI’s increase depends on petrol prices, which tend to decline on the international market. As a result, this year’s inflation can be controlled at a low level and lay a basis for economic growth.