return icon

Pork and oil prices key to keeping inflation in VN under control: experts

With huge inflation pressure on the way in the remaining months of this year, a close watch must be kept on the prices of key products like oil and pork to hit the goal of keeping inflation below 4 per cent, experts have said.



Close watch must be on pork and oil prices to keep inflation under control. — Photo


According to Nguyen Ba Minh, director of the Institute of Economics – Finance, two factors will weigh on inflation in the second half of this year. The first is the prices of commodities in the global market, which are forecast to increase as the COVID-19 pandemic is gradually contained and production and trade recover.

The second factor is natural disasters and diseases in Viet Nam, such as African swine fever, drought, saltwater intrusion and extreme heat which would affect agricultural production as well as supply and demand of goods in the market.

Inflation is currently under considerable pressure and the consumer price index (CPI) jumped 0.66 per cent in June against the previous month, the largest increase since 2016. However, Minh said the Government’s target of keeping inflation under 4 per cent would be achievable, provided that price and market management policies are appropriate and timely.

In a conference on inflation forecast in the second half on Thursday, Nguyen Duc Do, the institute’s Deputy Director, said pork and oil prices would need special attention.

Do cited analysis of the General Statistics Office that the increase of 68.2 per cent in pork prices in the first half of this year pushed up the overall CPI by 2.86 per cent. However, tumbling oil prices made up for the increase in pork prices, which helped the lower prices of the transport services category by 9.26 per cent.

With the CPI expanding by 3.17 per cent in the first half of this year, Do said the CPI must be kept at below 0.6 per cent per month till year-end to keep the CPI for the full year at 4 per cent.

The target was achievable, Do said, adding that the Government must act to lower pork prices by importing pigs and promoting reproduction.

Vu Vinh Phu, chairman of Ha Noi Supermarkets Association, said if oil prices did not see significant increases in the second half of this year, forecast at about US$40 per barrel, lowering pork prices would help control inflation.

Phu urged the Government to have strict measures to handle unreasonable increases in pork prices.

Economic expert Ngo Chi Long, however, noted that price management and inflation control would be more difficult this year as the COVID-19 pandemic was weighing on the economy. Risks existed, especially if the coronavirus were to start spreading in the country again, Long said, adding that caution in price management was vital. Long said it was also important to have a reasonable roadmap for a power price adjustment and increases in textbook prices.

The Government must also remove difficulties for businesses to accelerate economic growth, he added.

At the meeting with the Steering Committee on Price Management early this week, Prime Minister Nguyen Xuan Phuc insisted inflation must be kept under 4 per cent this year without tightening fiscal and monetary policies to promote growth. — VNS


A majestic pagoda in Tra Vinh Province

Phno Don is one of the biggest and most majestic of the 143 pagodas in Tra Vinh Province. It is a splendid example of Khmer architecture.

Vietnamese ICT enterprises more deeply involved in global value chain

Over 10 years ago, Vietnamese software companies performed only a few stages under orders from foreign partners but the work has now expanded.

China proposes re-signing protocol for seven kinds of Vietnamese fruit

China has proposed signing protocol for seven types of local fruit exported to the northern neighbour via official channels for stricter management, as is currently applied to durian and star apples.

10-year-old translator brings scientific knowledge closer to young readers

Children’s history book series, Unstoppable Us, by best-selling author Yuval Noah Harari, has been translated from English into Vietnamese by a 10-year-old translator and published by Omega Plus.

Floods kill five in central region

Heavy downpours and floods in the central region in the past few days claimed the lives of five people as of 5pm on December 6.


Vietnam spends nearly 190 million USD on importing pork in ten months

Vinfast faces challenges in North America

North America is a promising market, but it is not easy to be successful because there are many rivals there.

Festivities celebrate holiday season in HCM City

HCM City is preparing to launch a series of festivities to celebrate the New Year and Tet holidays (Lunar New Year).

Young driver offers thousands of free rides for poor patients

Dang Xuan Hieu, 24, has for four years given free trips to thousands of poor patients in Ha Giang Province.

Policies take effect in December 2022

Below are among new policies on import and export nomenclature, electricity generation price bracket, and licenses to manufacture tobacco products taking effect from December.

Finance Ministry to raise taxes on land and housing

Taxes on land and housing in Vietnam are far lower than those in other countries, exposing the need for higher tax rates to improve fiscal revenues.

Vietnam, RoK enter new chapter of cooperation

Vietnam and the Republic of Korea have entered a new chapter in their relationship as they upgraded to a comprehensive strategic partnership during President Nguyen Xuan Phuc's official visit to the country.

Free piano class for the elderly in HCM City

A piano class has been run free-of-charge for elderly people in Ho Chi Minh City for the past five years.

Business safety in the digital age

Vietnamese businesses are facing challenges related to cyber security and difficulties adapting to digital transformation.