Vietnam’s general Statistical Office (GSO) on January 24 officially announced the country’s January CPI increased 1.74 percent against the previous month, lower than December’s 1.98 percent and then it forecasted that this month’s CPI may rise 1.8-2 percent, the state-run newspaper Thoi Bao Kinh Te Vietnam reported.
“February 2011 will not see any sudden change in consumer prices. The price index may surge 1.8-2 percent, matched to the mobile law of Tet holiday”, citing the report which was used in the Ministry of Finance’s Price Management Department’s meeting under in January 2011.
The report said, price management agency admitted that January CPI broke the previously recorded acceleration trend and it was just the short-term correction. January CPI increased 1.74 percent against the previous month, lower than December’s 1.98 percent. Therefore, if February CPI goes with the aforementioned scenario, the targeted inflation of below 7 percent in this fiscal year will be difficultly reached in next month.
The management department built the above law based on price analysis in many years, such as goods supply and demand, available purchasing power of people, impacts of world prices along with price curbing measures.
According to the department, the affordable purchase power was the factor affecting strongly to the market prices. In the end of last year end (Lunar Year), purchasing power of people increased considerably because minimum salary was raised from January 1 and Tet bonuses came to consumers.
Meanwhile, the inbound remittances were estimated at $8.3 billion in 2010, rising by 25.6 percent year-on-year. And the number of foreign visitors and overseas Vietnamese people to Vietnam during Tet holiday was expected at more than 500,000, which pressured on consumer prices.
In January, prices of some materials, goods on the world market (such as steel billet, petroleum, liquefied gas went up and caused strong effects to the domestic market.
The department expected these above-mentioned reasons would continue affecting to Vietnam’s CPI in next months.