Stable supplies, prices forecast until year’s end

08:44 | 08/09/2017 Trade

(VEN) - The Domestic Market Management Team recently met in Hanoi to review data for the first seven months of 2017, forecasting that market supplies and prices would be stable until the end of the year.

stable supplies prices forecast until years end
Pork prices have increased following continuous plunges

Meat, vegetables push up CPI

Nguyen Loc An, Deputy Director of the Ministry of Industry and Trade’s Domestic Market Department, said the commodity market this July was affected by some factors, including increases in pork, vegetable and petroleum prices.

Data from the General Statistics Office of Vietnam (GSO) show that total retail sales of goods in July reached an estimated VND327.6 trillion, up 1.19 percent compared with June, and nearly VND2.25 trillion in the first seven months, up 10 percent compared with the same period last year. The consumer price index (CPI) grew 0.11 percent in July compared with June, and in the first seven months, it grew 3.91 percent compared with the same period last year.

Deputy Director of the GSO’s Price Statistics Department, Do Thi Ngoc, attributed the CPI growth mostly to a pork and vegetable price increase. “CPI remained negative until July 14 and began increasing 10 days later due to pork and vegetable price rises. Food products contributed 0.19 percent to CPI growth,” she added.

Balancing price increase

Do Thi Ngoc predicted an upward trend of pork, vegetable and petroleum prices in August. Moreover, 30 provinces and cities are seeking permission to raise medical service costs applied to people who do not have health insurance cards. The collection of school fees in some localities will start in August. Purchases of school materials and education service costs will also increase. Meanwhile, however, prices of major products, such as gas and sugar, are expected to fall slightly. Taking into consideration the forecast price increases and declines, the overall picture for August is one of stability.

According to Nguyen Duy Thien, a representative from the Agency for Price Management under the Ministry of Finance, the Government Office recently issued guidelines by Deputy Prime Minister Vuong Dinh Hue for curbing inflation until year’s end. Specifically, the guidelines call for maintaining the price of electricity at its current level until the end of the third quarter and after that, consideration will be given to a slight increase, if necessary. The Ministry of Health is working with localities to assess the impact of medical service costs on the CPI, while at the same time lowering medicine prices to allow for price increases of other products.

“The domestic market is facing oversupply of most kinds of goods, so there will be no pressure to increase prices, and the CPI target set by the National Assembly is therefore feasible,” Nguyen Duy Thien said.