While the inflationary pressure, especially driven by hikes in prices of oil and food, devalues some currencies, Vietnam’s inflation target would remain unchanged.
With the average consumer price index (CPI) expanding 4.19% in the first six months of 2020, the target of curbing inflation below 4% set for this year remains feasible, according to Prime Minister Nguyen Xuan Phuc.
Prime Minister Nguyen Xuan Phuc. Photo: VGP. |
For the remaining six months of this year, the Vietnamese government would continue to focus on controlling inflation, Phuc said at a government meeting on July 1, adding this would be key to stabilizing the macro-economy and creating favorable conditions for economic growth.
In addition to addressing businesses' concerns, government agencies should pay more attention to prices of goods and inflation, he stated.
While the inflationary pressure, especially driven by hikes in oil and food prices, devalues some currencies, Vietnam’s target to keep the inflation rate under 4% would be unchanged, Phuc stressed.
“Flexible state management is required to avoid excessive intervention in the economic recovery process,” Phuc noted.
Phuc went on saying inflation control does not mean tightening fiscal and monetary policies. Meanwhile, price management policy must contribute to economic stabilization and facilitate business activities.
The PM requested the State Bank of Vietnam (SBV), the country’s central bank, and the Ministry of Finance (MoF) to continue managing the fiscal and monetary policies in a flexible manner.
The Ministry of Industry and Trade is tasked with closely monitoring the market and stepping up efforts against smuggling and trade frauds.
The MoF has set up two scenarios for price management. In the first scenario, the average CPI in 2020 is predicted to go up 3.64% year-on-year, and in the second one, the rate would be 3.95%.
The SBV expected Vietnam’s CPI in 2020 to be in range of 3.2 – 4.02%, while the General Statistics Office (GSO) also forecast two scenarios, one from 3.5 – 3.7% and another from 3.8. - 4.1%.
The consumer price index (CPI), the main gauge of inflation, expanded 4.19% year-on-year in the first half of 2020, a six-month high during the 2016 – 2020 period, according to official date.
Core inflation in the first six months of 2020 was up 2.81% year-on-year.
Other News
- 3,400 taels of gold purchased at the first-in-11-year auction
- HoSE to launch KRX-developed transaction system in early May
- Central bank moves gold auction to tomorrow
- Vietnam’s c.bank sells USD to stabilize exchange rate
- Central bank to auction gold to calm domestic market
- Vietnam's Central Bank ready to steady foreign exchange market
- Finance ministry clears bottlenecks to pave way for stock market upgrade
- Over 60% of Vietnamese use QR codes to pay
- Casinos contribute US$370 million to state budget over 5 years
- Standard Chartered and IATA partner to launch IATA Pay in Vietnam
Trending
-
Collective efforts are key to fight against plastic waste
-
Vietnam news in brief - April 25
-
Vietnamese contemporary ballet celebrates Europe Day
-
IT training urged to focus on semiconductors
-
Voluntary social security should cover larger part of informal sector: Experts
-
ASEAN Future Forum 2024: Promoting regional centrality
-
Central bank moves gold auction to tomorrow
-
[Video]Hanoi beauty spots featured in saxophone legend Kenny G's music video
-
Colorful stage shows in Hoan Kiem Lake pedestrian area