Finance watchdog urges CPI control

The Domestic Market Management Team’s members assembled on October 31 and agreed that drastic measures and strict control are needed to keep the consumer price index (CPI) below five percent in 2016 - the level set by the government. 


                               Fuel prices had a great impact on the CPI in October

CPI increasing rapidly

The General Statistics Office of Vietnam (GSO)’s data showed that the CPI in October rose 0.83 percent compared to September, of which medicines and health services soared 10.07 percent due to the recent increases in medical service fees in 15 provinces, starting on October 12. The CPI of traffic services soared 2.02 percent due to the increases in fuel prices in October, and that of educational services was up 0.61 percent due to tuition increases in a number of training facilities. The CPI in the first 10 months of 2016 rose four percent compared to December 2015, of which health and education services witnessed the highest growths.

Do Thi Ngoc - Deputy Director of the GSO’s Price Statistics Department said that after September, when the CPI increased relatively rapidly, the relevant ministries assembled and agreed that it should be cautious in regulating increases in health service prices. Therefore, only 15 provinces and cities saw higher medical service prices in October. This increase contributed only 0.5 percent to the CPI growth, while the predicted contribution is 0.8 percent. Although many measures have been taken, the CPI in the first 10 months of 2016 increased four percent over the same time in 2015 due to the soaring price of many goods and services.

Measures to curb inflation

According to Deputy Minister of Industry and Trade and Head of Domestic Market Management Team Ho Thi Kim Thoa, the year is ending, Tet (Lunar New Year Holidays) is nearing and therefore the community’s purchasing demand is expected to increase, so the CPI should be ensured not to exceed the target set by the government.

According to Price Statistics Department Deputy Director Do Thi Ngoc, the GSO recommended the relevant authorities not to increase the prices of health services in different localities at the same time, especially big cities like Ho Chi Minh City, to keep the market stable. Prices of all goods should be reviewed for increase in December to avoid an impact on the 2016 CPI and ensure observance of the CPI increase schedule set by the government, Ngoc said.

Vietnam National Petroleum Group (Petrolimex) Deputy General Director Pham Duc Thang recommended the

Domestic Market Management Team to propose that the Ministry of Finance and the Ministry of Industry and Trade take

flexible and efficient measures to minimize fuel prices’ impact on the CPI in the last two months and during the Tet time.

Phuong Lan / ven