Inflation projected to be kept below 4%

Friday, 2017-10-13 18:07:41
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Deputy PM Vuong Dinh Hue speaks at the meeting (photo: VGP)
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NDO - Deputy Prime Minister Vuong Dinh Hue has emphasised that inflation for the whole year should be curbed below 4% in order to help reduce costs for enterprises and fulfil the GDP growth target of 6.7%.

He made the remarks while holding a working session with the Steering Committee on Price Management in Hanoi, on October 13.

Deputy PM Hue, who is also head of the steering committee, asked the State Bank to continue executing measures to control core inflation at 1.6%, while ensuring that credit growth is aligned with any developments in inflation, as well as ensuring the capital absorption of the economy and pouring capital into prioritised sectors.

The average consumer price index (CPI) in the first nine months of 2017 increased by 3.79%, compared to the same period in 2016, and rose by 1.83% compared to December 2016.

The CPI rise was mainly driven by price increases in health and education fees as scheduled and the increase in petrol prices in the past few months. The price hike of sand for construction and minimum wages has also contributed to the increase in the CPI.

Meanwhile, the CPI is controlled by price decreases in food products, particularly pork, along with efforts of the Government and authorised agencies to stabilise prices.

The Deputy PM requested that the ministries and sectors pay significant attention to the upward trend of petrol, gas and food prices in the remaining months of this year so as to effectively control inflation.

In particular, he requested that the Ministry of Agriculture and Rural Development update its information on the losses of agricultural production due to storm Doksuri, heavy rains and floods in recent months, to co-ordinate the prices and production of farm produce in the last three months of 2017.

In addition, the Ministry of Transport was advised to promptly negotiate with investors and banks to reduce toll fees charged at BOT toll stations and the Ministry of Health was directed to continue its increase in health service fees as scheduled.