Vietnam’s efforts to control inflation in 2016
VOV.VN - The General Statistics Office reported this week that the Consumer Price Index (CPI) in March increased 0.57% from February and 1.69% from last year.
The highest growth rates were recorded in medicines and medical services. Economists say the CPI increase in March was due to increasing medical and educational service fees, which began to be applied in March in many localities nationwide.
Economist Nguyen Minh Phong said, “Higher inflation will be likely because of increasing service fees and the future effects of credit loosening policies, which will result in price hikes. The current high prices of a number of Vietnamese export items like rice will also be used to calculate the CPI. It will be difficult to control inflation in 2016.”
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Although the CPI in March increased significantly from February, the first quarter’s average increase was just 0.99% far below Vietnam’s inflation control target of less than 5% for 2016.
Economist Ngo Tri Long said, “I personally think that inflation will be kept at a low level because the price of input materials, particularly oil, is low and consumer confidence is increasing and a number of markets are recovering.”
A number of economists say a low and stable CPI will make the implementation of monetary policies easier.
Others say potential increases in the price of electricity, medical services, and petroleum will put pressure on inflation control efforts.
The government has assigned the Ministry of Finance and the Ministry of Industry and Trade to strengthen market oversight and control.
The government will adjust the prices of a number of essential goods to reduce the psychological effect of possible CPI increases in 2016.
