Price management authority proposes solutions to curb inflation after Tet
The Ministry of Finance's Department of Price Management (DPM) has proposed several solutions to curb the rising tendency of inflation after the Lunar New Year (Tet) holiday.
According to the price management authority, domestic gas and petrol prices are facing upward pressures due to impacts from the world market.
In the next fuel price adjustment, which will begin on February 11, gas and petrol prices are expected to be adjusted up, creating inflationary pressure on overall prices.
Vietnam is dependent on various imported materials for manufacturing. The rising prices of these materials in the international market are also playing a part in pushing up domestic prices.
Additionally, supply chain disruptions during the pandemic, coupled with labour shortages, are driving up production costs, compounding the situation.
The Government’s stimulus packages and the postponement of the roadmap to market price for State-managed goods have also come into play, the department added.
To keep CPI growth rate at 4% set by National Assembly, the authority suggested effective coordination between proactive fiscal policies and flexible monetary policies to rein in core inflation and boost economic recovery.
It also called on authorities to keep a close watch on the worldwide economic situation to respond timely to any changes in international prices and develop import policies that are favourable to domestic price management.
Local authorities are urged to focus on price control right from the beginning of the year. At the same time, the Ministry of Industry and Trade is called on to closely monitor international fuel prices, thereby managing domestic prices more properly and reducing their impact on the economy.
The DPM also recommended authorities tighten up on pricing by stepping up supervision and cracking down on anyone who unreasonably raises prices during holidays or spreads fake news to cause price volatility.
Regarding goods whose prices are under State’s management, authorities should adjust the prices of these goods with caution to make enough elbow room for CPI during the year, the department stressed.
It also said authorities should cooperate with the Ministry of Finance and General Statistics Office in developing price scenarios to be fully prepared for any price adjustment.
Lastly, it called for transparency and disclosure of any price-related information to keep inflation expectations anchored and dispel any misinformation that would spark market instability.
