Successful inflation control supports economic growth

The country’s CPI in the first nine months of the year was under control, creating favorable conditions for adjusting the prices of certain items, Hue said, adding that the successful inflation control will help reduce costs for businesses and support economic growth.
“CPI growth in the January-September period showed that inflation this year could meet the National Assembly’s target of less than 4 per cent,” he said. “However, there will be many factors affecting prices in the year-end month, such as increases in input and materials as well as rising demand for the Tet holiday.”

Ministries and agencies are required to ensure a balance in the supply and demand of essentials.

The recent hike of electricity retail price from VND1,622 (7.1 cent) to VND1,720 (7.6 US cent) per kWh since December 1 will add more pressures to inflation as it can affect many other industries and sectors.
According to a calculation of the General Statistics Office, the power price hike will drive the CPI to rise 0.08 percentage points in 2017.
For petroleum products, Hue asked the ministry to cooperate with the Ministry of Finance (MoF) in continuing to manage the market under Decree No. 83 from 2014 and suitably using the price stabilization fund to control prices, especially on holidays and when there is a continuous increase in world petrol prices, to avoid high inflation.
He asked the Ministry of Agriculture and Rural Development to instruct localities to closely follow changes in the market. The ministry should cooperate with MoIT in ensuring a balance in the supply and demand of essentials such as rice, food, and sugar.
The Ministry of Transport will undertake calculations with the MoF to negotiate and reduce fees at build-operate-transfer (BOT) toll booths.
Deputy PM Hue also directed the Ministry of Health to instruct localities to complete adjustments to healthcare prices outside the payment scope of the health insurance fund, noting that the government should closely manage prices in aviation, education and training, construction, pharmaceuticals, milk for children under six years old, and seaport services.
The State Bank of Viet Nam was, meanwhile, required to continue managing monetary policies flexibly in co-operation with fiscal policies to curb inflation.