VINACHEM

The Government would meet the target of keeping inflation at less than 5% in 2016, Deputy Prime Minister Vuong Dinh Hue told a meeting of the Steering Committee for Price Management last week.

Hue said the General Statistics Office forecast the consumer price index (CPI) would stay below 5% this year as targeted by the National Assembly’s (NA) target though fuel prices have surged to one-year highs and the January-November CPI edged up 4.5% compared to last December.

Hue noted the Government’s inflation control effort has paid off despite socio-economic challenges like price hikes in the healthcare, education and petroleum sectors, drought, saltwater intrusion and floods in many parts of the country.

According to the NA Resolution on 2017 socio-economic development, the inflation target is set at about 4%.

The economy would face challenges to meet the target as prices of many products that have plunged to record lows might inch up in the coming time, Hue said. Especially, 27 provinces and cities will revise up hospital fees while public service charges will increase too.

The global oil price is expected to continue climbing in the first quarter of next year to US$65-70 per barrel, a 9-15% pickup versus 2016. Natural disasters will also pile pressure on prices.

“With the experience in inflation control gained in 2016, the Government believes that it will be able to control inflation next year as assigned by the National Assembly,” Hue said.

To put inflation under control, Hue told the ministries of industry-trade, health and education-training to strictly monitor price changes to take appropriate coping measures. He said given drug price declines via auctions in the health sector and toll cuts in the transport sector next year, there could be room for the Government to control inflation. - SGT