CPI Forecast to Increase 0.5 per cent in June

Vietnam’s consumer price index (CPI) in June is estimated to rise by 0.5 per cent from May, which would push the inflation rate in the first half of this year to 4.1 per cent, according to the Ministry of Trade.

 

The ministry forecasts that the index will be stable because Vietnam is likely to control the spread of the food-and-mouth epidemic in the month, while favorable weather would yield good results in harvests. Moreover, the Government is also taking measures to stabilize prices.

 

However, the prices in the second half this year are expected to fluctuate sharply under pressure of food-and-mouth disease, floods and storms, pestilent insects, electricity and interest rate hikes, and minimum salary increase.

 

The higher prices of many material and commodities in the world market will also push up the costs of some domestic inputs, the ministry said.

 

According to the General Statistics Office (GSO), the price index in May went up 0.6 per cent on-month to reach 3.6 per cent for the first five months. It increased 7.5 per cent from a year earlier.

 

All the ten groups of commodities increased from 0.2 per cent to 2.9 per cent compared to last month.

 

This year, Vietnam targets to curb the index increase at 6-7 per cent, compared with the increase of 8.4 per cent last year.