CPI to grow by less than 4 percent this year: steering committee

Members of the Steering Committee on Price Management shared the view that the consumer price index (CPI) will grow by less than 4 percent this year, citing the positive outcomes of the first three quarters and price forecast for the last quarter.

The Steering Committee on Price Management has a meeting on October 13 (Photo: VNA)

At a meeting on October 13, the steering committee’s aides reported that prices were controlled in line with the target set by the Government and National Assembly. The figures were basically stable in the past nine months.

The CPI growth rate declined month on month with a nine-month average increase of 3.79 percent compared to the same period of 2016. However, it grew by only 1.83 percent against last December.

The CPI hike between January and September was mostly attributable to the scheduled augmentation of medical and educational services prices, which are under the State’s management, along with the five consecutive rises of petrol prices in recent months. The increases of minimum wage at the year’s beginning and construction sand prices since the second quarter are also contributors to the CPI growth.

Meanwhile, CPI was hampered by falling food prices, especially pork prices in mid-2017, strong price management moves taken by the Government and sectors, and a flexible monetary policy that has helped stabilise exchange rates and interest rates, according to the aides.

Applauding inflation control efforts, Deputy Prime Minister Vuong Dinh Hue said inflation rate must be kept at below 4 percent while core inflation must be at 1.6 percent this year so as to help minimise expenses for businesses and achieve the targeted economic growth rate of 6.7 percent.

Regarding the last quarter of 2017, he asked ministries and sectors to pay attention to the rising trend in petrol, gas and pork prices.

He also told the Ministry of Agriculture and Rural Development to update information about damage caused by the recent storm Doksuri and floods in order to manage prices of agricultural products. Meanwhile, the Ministry of Industry and Trade needs to continue coordinating with the Ministry of Finance to use the petrol price stabilization fund appropriately, helping to control petrol prices’ subsequent impacts on other goods.

The State Bank of Vietnam was ordered to adjust credit growth to inflation and ensure capital is channeled into prioritised fields.

(Source: VNA)