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GSO proposes six measures to manage prices

Released at: 15:35, 30/12/2016

GSO proposes six measures to manage prices

Photo: Duc Anh

GSO proposal to curb inflation to targeted 4 per cent in 2017.

by Nghi Do

The General Statistics Office (GSO) has proposed six measures for managing prices in order to curb inflation in 2017 in line with the National Assembly’s goal of the CPI being 4 per cent.

Mr. Nguyen Bich Lam, Director General of the GSO, said that 2016 was a successful year for policies from government and ministries for controlling inflation at less than 5 per cent and adjusting the prices of some public services closer to market prices.

Firstly, the Ministry of Finance (MoF), the Ministry of Industry and Trade (MoIT), the Ministry of Planning and Investment and the State Bank of Vietnam (SBV) need to actively cooperate to evaluate prices and set up pricing methods, including in medical and education services and electricity and water prices, as well as interest rates and exchange rates. Before adjusting the price of goods and services, relevant agencies need to calculate and agree upon them and then report to the government.

Secondly, ministries and departments and the people’s committees of cities and provinces need to monitor the price of necessary goods to adopt measures and actively prepare at the beginning and end of holiday periods to restrict price increases.

Thirdly, in terms of petroleum and electricity, MoF and MoIT need to monitor changes to global crude oil prices and use the petrol price stabilization fund consistently to limit any increase in prices. MoIT must also actively set methods for electricity price increases to calculate the effects on the CPI, the industrial price index, and GDP growth.

Fourthly, in terms of medical and education services, the GSO proposes the Ministry of Health and the Ministry of Education and Training cooperate with relevant ministries and departments to forecast factors affecting the CPI in 2017 that may adjust prices under the roadmap for cities and provinces to minimize any ripple effect on the CPI.

Fifthly, the SBV needs to stabilize interest rates and exchange rates and keep core inflation around 2 per cent.

Sixthly, adjustments to the prices of medical and education services in 2017 need to coincide with adjustments in 2016 to limit high increases in the average annual index.

In 2017 the government has set a goal of curbing inflation at 4 per cent but this is calculated under a new method, of average annual CPI, instead of comparisons with the previous December. When compared to last December, 2016’s inflation rate was 4.74 per cent but on average it was 2.66 per cent.

The GSO has forecast that changes to prices in 2017 will be more regular and higher than in 2016.

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