Vietnam consumer prices predicted to continue downward trend in March
Food and medical items are seen as major factors driving up inflation rate in March.
Vietnam’s consumer price index (CPI) is predicted to continue the downward trend seen in the previous months with a decline of 0.38% month-on-month but still up 5.22% year-on-year, according to KB Securities’ report.
Meanwhile, inflation is estimated at an average of 5.68% year-on-year for the January – March period, stated the report.
With inflation above the State Bank of Vietnam (SBV)’s full-year target of 4%, it is expected monetary policy will remain tight in the near term and Vietnam will not resort to any strong easing as seen in other countries in the region.
Moreover, low credit growth has led to abundant liquidity conditions and the SBV, the country’s central bank, has been conducting open market operations to reduce liquidity for the past six weeks.
KB Securities said as prices of rice exports have increased by nearly 5% from the previous month, this will likely push domestic rice prices higher and lead to a 0.5% increase in the food price index for March.
The Covid-19 epidemic could put pressure on domestic pork prices in the second half of March in two important ways: (1) increased hoarding due to outbreak fears; and (2) stockpiling by traders for illegal smuggling to China.
Prices for medicine and health services is forecast to rise by 0.15% in March or at a similar pace seen in February amid increasing demand for medical treatment as new cases of Covid-19 infections have emerged.
The brokerage firm expected the government to continue focusing on preventing any further spread of Covid-19 epidemic and asking commercial banks to support affected businesses.
Meanwhile, resumption of China’s production activities should help the recovery of Vietnam’s manufacturing sector, but tourism, transportation, aviation and consumption will likely continue to suffer until the epidemic is fully contained.
Other News
- Hanoi strengthens export competitiveness and trade protection measures
- US reiterates Vietnam is not manipulating currency
- Vietnam, Brazil: Building bridges through shared history and new partnerships
- Hanoi to attract tourists by showcasing local specialties at wholesale markets
- National E-commerce Week, Vietnam Online Shopping Day 2024 set to kick off
- Vietnamese goods in rising demand among Hanoi residents
- Hanoi unveils 2024 rural industrial plans
- Hanoi advances supporting industries for hi-tech services
- Vietnam’s economy remains resilient amid global uncertainties: ADB
- Vietnam’s 9-month fruit and veggie exports match last year's sales
Trending
-
Hanoi to lead national digital transformation efforts
-
Vietnam news in brief - November 22
-
Are Vietnamese people living healthier lives?
-
Finding ways to unlock Hanoi's suburban tourism potential
-
Hang Ma Street gears up for festive season
-
A Hanoi artisan turns straw into appealing tourism product
-
“Look! It’s Amadeus Vu Tan Dan” workshop - an artistic journey for kids
-
Vietnam news in brief - November 15
-
Experiencing ingenious spaces at the Hanoi Creative Design Festival 2024