Core inflation forecast at 2.5% this year
Core inflation forecast at 2.5% this year
Deputy Prime Minister Vuong Dinh Hue, who is also the head of the Government’s Steering Committee for Price Management, has told the State Bank of Vietnam to find ways to control core inflation at 2%-2.5% this year, VnEconomy news site reported.
The deputy prime minister also ordered the central bank to continue applying monetary policy in an active, cautious and flexible manner and combine it with other fiscal and macroeconomic policies to control inflation, according to a notice on a conclusion by Deputy PM Dung at a meeting issued by the Government Office.
The notice stated that the 2019 consumer price index (CPI) averaged out at 2.7%-2.8% over 2018, well above the target of 4% set by the National Assembly (NA) and the Government in early 2019.
The inflation over the past four years was kept under control, contributing to socioeconomic growth and stabilizing the macroeconomy.
The deputy prime minister asked the relevant agencies to continue these achievements and their assignments and to enhance price management and monitoring in 2020 and the following years.
At the eighth sitting of the NA, the assembly set a gross domestic product growth target of 6.8% for 2020, while the CPI must be kept below 4%.
To fulfill these targets, Deputy PM Hue told the relevant agencies not to adjust the prices of certain products set by the State in the first and fourth quarters of the year and to foster the market stabilization program during Tet as part of preparations for the Lunar New Year 2020.
Besides this, Deputy PM Hue also told the relevant agencies to keep a close watch on the supply and demand of the local market and to adopt effective measures to bring the prices of many items, mainly essential goods, in the weeks around the Tet holiday under control.
The ministries of Industry and Trade and of Agriculture and Rural Development were also asked to ensure the production and distribution of goods run smoothly to serve the local and global markets.
Inspections to ensure compliance with regulations on prices should be enhanced, said Deputy PM Hue.
Apart from this, the deputy prime minister also told the relevant agencies to map out scenarios to cope with a potential price hike for various items and services during Tet.
