Accelerate solutions to release inflation valve in 2024

Many inflationary pressures from the beginning of the new year

Since the beginning of 2024, the price of live pigs - one of the groups of goods in the "basket" of goods affecting the consumer price index (CPI) has increased.

On January 3, 2024, the price of live pigs in the northern provinces increased by about 1,000-2,000 VND/kg, of which Tuyen Quang province increased the most (2,000 VND/kg). The average price of live pigs nationwide on January 3 increased by about 1,000 VND/kg compared to the end of 2023.

The price of live pigs has only increased slightly, but the price of pork sold at traditional markets has been pushed up by traders by about 3,000 VND/kg, of which the price of good meat has been pushed up to 160,000 VND/kg.

"The prices of food, beverages, school supplies, construction materials... will have a significant impact on the CPI index. Therefore, right from the beginning of the year, there have been signs of unsafe conditions to curb inflation" - Mr. Vu Tuan Anh - Chairman of GLE Company assessed.

Sharing with Lao Dong reporter, Ms. Nguyen Thi Huong - General Director of the General Statistics Office emphasized that a number of factors affect the inflation rate in 2024, especially the price of input materials. Vietnam is a country that imports a lot of raw materials for production, so it will affect costs and prices, creating pressure on business production and thereby pushing up the price of domestic consumer goods.

“An important factor is that the increase in the US dollar (USD) exchange rate further increases the cost of importing raw materials, putting pressure on domestic commodity prices,” Ms. Nguyen Thi Huong emphasized.

Ms. Huong also pointed out some other factors such as: Adjusting the prices of state-managed services in the direction of correctly and fully calculating all factors and implementation costs into the prices of medical services andeducation tuition fees will increase the CPI index;

Vietnam Electricity Group (EVN) may continue to increase electricity prices when input materials such as gasoline, oil, and coal are all at high levels; Prices of food, beverages, clothing, equipment, and household appliances often increase according to the rule in the last months of the year and on holidays and Tet.

In addition, natural disasters and epidemics can affect food prices in some localities, which will also increase the CPI...

Relieving inflationary pressure early with strong solutions

According to Ms. Nguyen Thi Huong, in order to control inflation well according to the set target, the Government, ministries, sectors and localities need to closely monitor price and inflation developments in the world , promptly warn of risks affecting prices and inflation in Vietnam to have appropriate response measures to ensure supply and stabilize domestic prices.

Ministries, branches, People's Committees of provinces and centrally run cities need to closely monitor price developments of essential goods (food, foodstuffs, pork, gasoline, gas, etc.) to have appropriate management solutions and proactively prepare sources of goods at the end of the year to limit price increases. At the same time, it is necessary to have measures to control and stabilize prices, strictly handle violations, and avoid unreasonable price increases and spreading false information that causes market instability.

"It is necessary to develop, calculate the dosage and timing of price adjustments for goods and services managed by the State (electricity, healthcare services, education services) in accordance with the inflation control target. Quickly develop plans and roadmaps for price adjustments to avoid being passive in policy coordination. The Government continues to operate monetary policy proactively, flexibly, cautiously, closely coordinating with fiscal policy and other macroeconomic policies to control inflation according to the set target," said Ms. Huong.

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