VINACHEM

Deputy Prime Minister Vuong Dinh Hue said prices of certain goods and services will be adjusted this year since inflation is projected to stay very low.

“We will continue to effectively control inflation (this year),” Hue told the conference.

Hue added the Government has worked out three scenarios for inflation in 2017 with the worst-case one putting this year’s core inflation at 3.5% and average inflation at 3.42%.

Hue said the goal for pricing management this year is to speed up the road map that allows prices of certain goods to gradually reach market levels besides inflation control. “We have an opportunity to do this.”

The goods and services include fuels, electricity, healthcare and educational services.

The National Financial Supervisory Committee estimated this year’s average inflation at 2.4%.

The committee said in a report sent to the Government that inflation would continue falling towards the end of 2017, backed by stable prices of food and dining services. So, inflation will be around 2.4% this year if there is no upsurge in prices of goods on the world market and higher prices of public services mulled later this year are excluded.

The committee calculated that if prices of public services are revised up as in the first half of 2016, inflation will add 1.8-2 percentage points. Inflation will increase by a further 0.17 percentage point if the U.S. dollar strengthens against Vietnam dong by 1% and 0.3-0.4 percentage point if power tariffs are adjusted up 8-10%.

Data of the General Statistics Office indicated the country’s core inflation grew 1.52% in the first half compared to the same period last year.

Despite the low inflation projection, the Deputy PM told the Ministry of Finance to work with the Ministry of Transport over early fee cuts at 44 tollgates for road BOT projects nationwide in accordance with a conclusion of the State Audit of Vietnam.

“Priority should be given to lowering tolls rather than shortening toll collection periods at BOT projects,” Hue said. “Enterprises are grappling with high input costs.” - VNN -