Econ
CPI in 2017 to be under the target number of 4%
According to experts, the consumer price index (CPI) in 2017 has been under control and within the limit accepted by the National Assembly under 4%.
Specifically, the inflation report released by SSI Retail Research showed that CPI on food, transportation and real estate along with the increasing price of electricity at 6.08% since December 1 are expected to increase CPI in December, but will be within the limit accepted by the National Assembly within 4%.
Many experts also shared the same view with the report of SSI Retail Research. As in previous year, CPI often increased significantly in the few remaining months of the year, but in 2017, CPI in the last three months is still quite low. In average, CPI in November reached 3.61%, so there is still room until the target of 4%. In December, the most impactful factor will be the increasing price of electricity, however the impact is expected to be not significant, but will affect CPI in January. As such, CPI in 2017 will be likely to reach the target.
However, this target has been difficult to reach. AS in the first 6 months of 2017, CPI has been higher than the allowed limit of the National Assembly. In which, CPI in January 2017 reached 5.22%, the highest percentage rate in the past 3 years. As of June, the average CPI has increased up to 4.15% and is higher than the limit number of National Assembly, (target of under 4% compared to the same period of last year). However, thanks to a series of measures to control price of essential goods, CPI has been on a decreasing trend from Quarter 1 until the end of 2017. Therefore, CPI within the accepted limit is thanks to flexible management of the National Assembly.
According to the General Statistics Office, due to the impact from storm and landslide in northern area and central Vietnam, as well as increasing consumption demand in foods at some provinces/cities under direct management of the government, the price index for foods increased 0.57%. Meanwhile, the price index of materials for housing maintenance has increased 0.84%, mainly due to the increase price of steel and metal, with the increasing price of steel in domestic and international markets in recent months, due to the increase price of input materials in July.
In addition to price increase in some categories, there are some categories with price decrease slightly, such as, pork decreased 0.95% due to concern of customers with regard to the quality of the products. Also in October, extreme weather has led to a decrease in demand for electricity, which resulted in an decrease in price of 0.24%. Price of sand continues decreasing from 5 – 15% due to some provinces in southern Vietnam have given permission for sand excavation, while some provinces are in rainy weather, which led to a decrease in construction. October is also not a tourist season, so the price for tour in Vietnam has decreased by 0.16%.
Vietnam's CPI in 2017 to be within the target of 4%.
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However, this target has been difficult to reach. AS in the first 6 months of 2017, CPI has been higher than the allowed limit of the National Assembly. In which, CPI in January 2017 reached 5.22%, the highest percentage rate in the past 3 years. As of June, the average CPI has increased up to 4.15% and is higher than the limit number of National Assembly, (target of under 4% compared to the same period of last year). However, thanks to a series of measures to control price of essential goods, CPI has been on a decreasing trend from Quarter 1 until the end of 2017. Therefore, CPI within the accepted limit is thanks to flexible management of the National Assembly.
According to the General Statistics Office, due to the impact from storm and landslide in northern area and central Vietnam, as well as increasing consumption demand in foods at some provinces/cities under direct management of the government, the price index for foods increased 0.57%. Meanwhile, the price index of materials for housing maintenance has increased 0.84%, mainly due to the increase price of steel and metal, with the increasing price of steel in domestic and international markets in recent months, due to the increase price of input materials in July.
In addition to price increase in some categories, there are some categories with price decrease slightly, such as, pork decreased 0.95% due to concern of customers with regard to the quality of the products. Also in October, extreme weather has led to a decrease in demand for electricity, which resulted in an decrease in price of 0.24%. Price of sand continues decreasing from 5 – 15% due to some provinces in southern Vietnam have given permission for sand excavation, while some provinces are in rainy weather, which led to a decrease in construction. October is also not a tourist season, so the price for tour in Vietnam has decreased by 0.16%.
