The second half of 2022 will face the fact that the risk of inflation is very high. In the midst of the price storm, the Deputy Prime Minister requested flexibility in monetary policy and management of the prices of essential goods, especially gasoline prices.
The Ministry of Industry and Trade reported that, on average, in the first 5 months of the year, CPI was 1.29% higher than the same period in 2021 but still lower than the period 2017-2020.
The common ground is still under control, when the inflation rate in the first 5 months of the year increased slightly by 1.1% compared to the same period in 2021.
Explaining the reason for the increase in CPI, experts said that it is mainly influenced by the increase in gasoline prices in line with world prices, leading to a chain of construction materials, input materials, and freight charges.
At a meeting on June 13 on managing the prices of a number of essential commodities chaired by Deputy Prime Minister Le Minh Khai, representatives of ministries and sectors said that the management and control of inflation in the context of “price storms” on the world market. Globalization is very difficult, even for developed economies, as well as countries in the region.
Ministries also emphasized that in the coming time, the room to control prices in the coming time is still very low, “the risk of high inflation is present”.
At the meeting, Deputy Prime Minister Le Minh Khai said that although inflation pressure in the first 5 months of the year was high, we were able to control it. Meanwhile, inflation of some countries such as Indonesia increased by 2.8%; Thailand 5.19%; Philippines 4.06%; US 8.6%; European countries increased by 5.7%…
However, inflation pressure is still very intense and is forecasted to be even higher in the near future. Especially when it comes to gasoline prices, both domestic and foreign forecasts show that the upward momentum will continue to have strong impacts on other industries.
In addition, Deputy Prime Minister Le Minh Khai also requested the State Bank to coordinate with the Ministry of Finance to implement flexible monetary policy; closely coordinate monetary policy with fiscal policy and other macro policies to control inflation in 2022.
“This is a very important issue! We must be very cautious. If we neglect to let inflation expectations rise, it will be very difficult to control,” said Deputy Prime Minister Le Minh Khai.
For the price management of some essential commodities, the Deputy Prime Minister suggested that there should be “early forecasts” of market movements to take flexible management measures.
Especially for petroleum, the BOG Fund needs to be used rationally, ensuring supply and conserving import options. At the same time, strengthen control, prevent and strictly handle cases of petroleum smuggling across the border.
In addition, the Deputy Prime Minister requested the ministries and sectors to strictly manage the freight rates, ensuring an appropriate increase; do not let the supply of construction materials be interrupted, strictly handle cases of taking advantage of goods hoarding, increasing prices, implementing measures to announce prices early, publish monthly to support businesses.