Updated  
October, 31 2012 09:33:58

Ministry projects 8% inflation

 

Consumers buy fresh fish at a market in Ha Noi. The nation's inflation rate is expected to increase to 8 per cent this year. — VNS Photo Doan Tung
HA NOI (VNS) — The country's consumer price index (CPI) was expected to increase 8 per cent for this year against last year if the state continued existing policies on curbing inflation, an official of the Ministry of Industry and Trade (MoIT) said at the ministry's monthly meeting on Monday.

Vo Van Quyen, head of the ministry's Domestic Market Department, said a year-on-year increase of 8 per cent for the national CPI this year was possible.

After the CPI experienced a sudden hike of 2.2 per cent in September due to increases in school fees, the State began to control increases in prices of essential goods, with an aim to curb inflation by the end of the year.

As result, the national CPI was under control this month with an increase of 0.85 per cent compared with last year, Quyen said. The index this month surged 6.02 per cent against December 2011.

He said the ministry predicted supply and demand of many essential goods would remain fairly stable for the rest of the year. However, vegetable prices might increase due to stormy weather.

Additionally, pork prices saw a small increase of VND1,000-2,000 per kilo because high input prices slowed pig production and even stopped some from raising pigs.

Therefore, the ministry proposed the Ministry of Finance and the State Bank of Viet Nam come up with comprehensive solutions to encourage farmers to expand their pig herds, such as by lowering interest rates. This would avoid a situation where pork supply for the domestic market fell short of demand, he said.

By this year end, the smuggling of goods - particularly poultry - would increase, said Dao Minh Hai, deputy director of the ministry's Market Watch Team. Hai recommended that industry and trade departments and cities, as well as provinces, increase market inspections to prevent smuggling.

Industry and Trade Minister Vu Huy Hoang said ministries, sectors and cities as well as provinces should continue working together to ensure that there was enough rice and other foods, as well as other essential goods such as sugar, fertiliser, petrol and oil.

They should continue flexible management for those products and implementation of price stabilisation programmes, Hoang said. — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

SEE ALSO

Hightlight

Tax code reforms to decipher dependents Tax code reforms to decipher dependents

People who are dependent on personal income tax payers will be given their own tax codes to avoid people lodging claims as dependents of more than one taxpayer.

Farmer-firm linkups remain elusive despite Gov't efforts Farmer-firm linkups remain elusive despite Gov't efforts

More than 10 years after the Government unveiled policies to encourage tie-ups between farmers and businesses, the proportion of farm produce sold through such contracts remains modest.

Buddha statues highlight heritage Buddha statues highlight heritage

An exhibition of Buddhist artefacts from the 11th to 20th century opened yesterday at the HCM City-based Xa Loi Pagoda.

Australian book to provide ‘limitless' inspiration Australian book to provide ‘limitless' inspiration

A book by Australian limbless victim Nick Vujicic was launched in Vietnamese yesterday.