The government spokesman emphasised on the importance of lowering
inflation while increasing growth during this month’s regular government press
conference on January 29.
As part of his answer to a press
question on January’s consumer price index (CPI), Minister, Chairman of the
Office of Government, Vu Duc Dam said: “Inflation control and macroeconomic
stability remain the top priority and require closer coordination between
ministries and localities.”
According to the General
Statistics Office, this month’s CPI increased aggregately 1.25pct against last
December, which is approximately an average rate in comparison with January’s
CPI during 2003-2012.
Meanwhile, the January 2013 index
rose 7.07pct over the same period of last year, which is in fact among the
lowest increase rate in the last six years, with the figure for January 2011
and 2012 being 12.17pct and 7.27pct, all against the same period of the
previous year.
However, the increase of over
1pct in CPI is considered a “warning signal” of challenges in achieving the
inflation target of 6-6.5pct for 2013 set by the Government, requiring the
authority “to be very cautious”.
Minister Vu Duc Dam attributed
the CPI rise to the increase of healthcare cost, supply shortage and rising
demand on the threshold of the Lunar New Year.
Accordingly, due to the recent
prolonged severe cold weather that damaged farmers’ harvests, prices of
commodities rose by approximately 1.3pct on average.
Remarkably, during the first
month of the year, healthcare service prices were increased in 10 provinces,
rising the index for medicine and health care by 7.4pct, of which health care
went up sharply by 9.5pct, all against December of last year.
Medical costs are also expected
to rise in other provinces later in the year, after the price adjustments were
postponed in accordance with the Prime Minister’s direction in late 2012, which
indicates even higher CPI in the near future.
Acknowledging the inflation
control difficulties, the Minister stressed on the operation and cooperation of
ministries and localities in implementing the Resolutions No. 01 and 02/NQ-CP,
set out by the Government since the beginning of the year.
Minister Vu Duc Dam reclaimed
that the government is consistent with pulling down last year’s inflation of
6.8pct and boosting growth to over 2012’s rate of 5.5pct.
“In operating [the economy], it
is necessary to tiptoe between curbing inflation and keeping growth. Credit
tightening may constrain growth, create surplus labor leading to instability;
but if [we] chase growth target and excessively extend credit, inflation may
return.” said the government spokesman.
VGP
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