The Ministry of Planning and Investment said Vietnam’s February consumer price index (CPI) climbed 0.55 percent over the previous month. This was the lowest February CPI growth in 10 years. This rate only reached nearly half of the growth in the same month of 2013, although it included the Lunar New Year holiday or Tet. Many attributed the slowing CPI to weaker demand.
According to the report by the ministry, the group of foodstuff and food services made the biggest increase of 1.15 percent because of higher consumer demand during the New Year holiday, particularly eat-out demand (up 1.6 percent). This was the only group of consumer goods with a rise of over 1 percent. The group of transportation followed with a 0.66 percent growth and the group of culture, entertainment and tourism came third with 0.61 percent, driven by higher travel demand during Tet. The group of housing - building materials shed 0.64 percent on limited housing repairing and construction during the Tet. The group of telecommunications fell 0.02 percent.
At the meeting of the Domestic Market Management Division on February 27, 2014, Mr Nguyen Duc Thang, Director of Price Statistics Department, the General Statistics Office (GSO), said: "In February, the supply of foods and foodstuffs, specially vegetables, was plentiful and prices were not high. Besides, anticipating that prices tended to increase during Tet on short supply, the Government very closely directed the Ministry of Industry and Trade and the People's Committees of provinces and cities to prepare ample supply, ease market sentiment and minimise speculation and hoarding of goods for Tet. This led to low inflation."
Ms Ho Thi Kim Thoa, Deputy Minister of Industry and Trade, added that the low CPI growth was resulted from drastic, effective government-backed measures and policies like ensuring the supply source, especially foods, successfully implementing price stabilisation measures, strengthening market price management, preventing smuggling, tax evasion, and illicit trade in counterfeits.
Mr Nguyen Van Nen, Minister and Chairman of the Office of the Government, said the monthly cabinet meeting for February 2014 that “The 10-year February CPI low was not driven by weak demand. During Tet, goods and services were abundant and Vietnamese items dominated the market. Prices did not increase much, with some seeing a slight decline.”
He added that citizens enjoyed a happy, healthy, safe, economical and full New Year holiday. Social and political security and order was maintained.
Huong Ly
Vietnamese
