Update news inflation
Despite rising commodity prices following the Russia-Ukraine crisis, experts believe that within six months or a year from now, global inflation will cool down.
Oil prices have increased sharply in recent days following the tension between Russia and the West over Ukraine. The high price of oil and fears of an escalation of war have hit commodity and financial markets.
In a recent report, HSBC adjusted its prediction for Vietnam's inflation this year from 2.7 per cent to 3 per cent, a slight increase but with negligible risk as the economy has shown signs of a strong rebound in the making.
According to several economic experts, this tax reduction is anticipated to help reduce service costs, thereby stimulating consumption, promoting production and business, whilst also creating additional jobs for workers.
The world economy is speeding up while Vietnam’s growth is slowing down. Economists believe that the VAT (value added tax) should be reduced to stimulate demand, because it could result in immediate benefits.
Vietnam’s economic performance in the first five months of 2021 means the country remains on track for solid growth despite two waves of COVID-19 outbreaks, heard a Government meeting on Thursday in Hanoi.
Input cost inflation is the main concern for the second half of 2021.
Vietnam’s consumer price index (CPI) is set to average 2.89% in 2021, below the government’s target of 4%.
Vietnam’s economy with high level of openness could be susceptible to rising inflation as a result of growing global commodity prices.
Vietnam is likely to meet its target of reining in inflation at a rate of below 4% in 2021, although experts warn that unfavourable factors could impact market fluctuations.