Vietnam unlikely to achieve inflation target this year: experts

By Toan Dao   July 7, 2016 | 04:47 pm PT
The planned jump in health care and education prices in the second half is expected to put upward pressure on inflation.

Vietnam is unlikely to be able to keep its annual inflation rate this year below 5 percent as previously planned due to a number of factors, the Vietnamplus cited various experts as saying Thursday.

The consumer price index (CPI) in June this year rose 2.35 percent compared with December last year while average CPI in the first half hiked 1.72 percent year on year.

Le Quoc Phuong, Deputy Director of the Center for Industrial and Commercial Information under the Ministry of Industry and Trade, said January-June CPI was high because of the planned hikes in health care and education services, minimum wage as well as the rising global commodity prices since February.

“Commodity prices in the international market are expected to rise by the year-end. That the prices of health care and education services will also go up and the annual credit growth may surpass 20 percent is likely to lift CPI to 5-5.5 percent this year,” Phuong said in a workshop held in Hanoi on Thursday.

The government plans to further raise health care prices in August, October, November and December while education fees will be up in September.

Dr. Ngo Tri Long, a local expert, did not exclude the possibility that CPI may surpass the target of 5 percent this year. Apart from the planned increase in health care and education services, effects from adverse weather conditions and climate change are also expected to place more upward pressure on inflation.

A representative from the Price Management Department, Ministry of Finance, said CPI in the coming months will be affected by global prices of oil, natural gas and other basic commodities along with domestic weather conditions and environmental issues.

According to experts, localities across the country should closely monitor markets, domestic and global commodity prices in order to keep inflation below 5 percent.

Related news:

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> Vietnam aims to keep inflation under 5 percent in 2016

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