Consumer Prices Forecast to Rise 2 per cent in Feb

Consumer Prices Forecast to Rise 2 per cent in Feb

Vietnam's consumer prices will increase by more than 2 per cent in February due to soaring demand for consumer goods for the country's traditional Lunar New Year festival, which will fall on February 8-11, said the Ministry of Trade.

The prices of popular festival items, especially food, are rising as the holiday draws nearer and the bird flu epidemic continues to spread, ministry experts said. But, demand will not outstrip supplies, they assured.

Rising international prices will also boost Vietnam’s Consumer Price Index (CPI) according to the trade ministry. Fuel prices will keep surging as the global economy’s fast growth and increased international trading push up fuel consumption, the ministry said.

Other global consumer costs will rise as well, but not as fast as last year, experts added.

In January, the country’s CPI, a barometer of inflation, was up 1.1 per cent from December last year. Food costs, which form half of the basket of goods on which the CPI is based, rose 1.7 per cent.

January’s total retail sales hit VND37 trillion (US$2.36 billion), up 4.2 per cent from the last month and 17.7 per cent from last year’s same period.

• Young People Online