The National Assembly's Economic Committee pointed out that inflationary pressure is showing signs of increasing in the 2023 Socio-Economic Development Plan and State Budget supplementary assessment report; implementation in the first months of 2024.
“The consumer price index (CPI) compared to the same period has increased continuously since the beginning of the year and reached 4.42% in April 2024, bringing the average inflation in the first 4 months of the year to 3.93%, close to the target of 4 - 4.5% according to Resolution No. 103/2023/QH15 of the National Assembly ” - Chairman of the Economic Committee Vu Hong Thanh stated.
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| Inflationary pressure shows signs of increasing. (Illustration: MK) |
Regarding the above figures, delegate Tran Hoang Ngan ( Ho Chi Minh City Delegation) noted that the exchange rate has started to increase again, inflation is higher than the average of previous years, which are warnings about the macro economy, and control needs to be strengthened.
Delegate Hoang Van Cuong (Hanoi City Delegation) also commented that inflationary pressure in 2024 is not light. At the same time, he analyzed that in the previous period, inflationary pressure came from outside, but in 2024, inflationary pressure came from inside. Specifically, in the first quarter of 2024, the CPI was 3.77% and the CPI in April was higher than in March. Normally, in the first quarter, the CPI tends to increase due to the Lunar New Year, but in March and April it begins to decrease. This year, the CPI in April is higher. This is a factor showing that the CPI has a real upward trend.
“In the first four months of the year, the CPI was 3.93%, almost reaching the target set by the National Assembly at 4 - 4.5%, the pressure is very clear” - delegate Hoang Van Cuong pointed out.
According to delegate Hoang Van Cuong, if inflation occurs, it will lead to a series of other consequences for the economy. Typically, when people's savings interest rates in banks are lower than the CPI, people will use that money to do other things, invest in other areas, such as gold or real estate.
Sharing the same concern, delegate Nguyen Thi Yen (Ba Ria - Vung Tau delegation) said that the CPI in April increased by nearly 1% compared to the previous month and the average for the first 4 months of the year increased by 3.93%, showing that controlling inflation is something that needs to be done immediately to ensure stable macro-economic growth.
Delegate Yen pointed out that the depreciation of the Vietnamese Dong against the USD and the increase in the prices of many essential goods and raw materials are the main reasons for the upward trend in the inflation index in recent months. In addition, the pressure on the exchange rate has also increased sharply, affecting the goal of stabilizing the currency market.
To control inflation, delegate Hoang Van Cuong suggested that interest rate management should be flexible. “Lending interest rates should be determined at a reasonable level and deposit interest rates should be above the forecast inflation rate, specifically 5-6%/year. Lending interest rates should not be pushed up to over 10%/year as before. If it is stable at around 7-8%/year, businesses with the ability to absorb capital will still be willing to accept it, thus ensuring a balance between interest rate management and inflation,” said delegate Hoang Van Cuong.
According to delegate Nguyen Thi Yen, the Government needs to have a reasonable policy to regulate growth and inflation. "Inflation needs to be well controlled, including the fact that the salary increase in July will lead to an increase in the prices of many other essential goods, so that appropriate macroeconomic policies can be developed. At the same time, there should be a scenario for managing prices of essential goods to be able to respond promptly to market fluctuations," said delegate Nguyen Thi Yen.
In response to concerns from National Assembly deputies, at the Question and Answer Session of the 7th Session, Deputy Prime Minister Tran Hong Ha said that Vietnam has an open economy, so we import a lot of supplies and raw materials, which depends on the world market; while we are implementing stimulus packages and increasing wages. This is the cause of fluctuations and impacts on the macro economy, especially controlling the inflation rate as allowed by the National Assembly. However, the Deputy Prime Minister affirmed: "With the harmonious adjustment between economic growth and inflation prevention and control, adjusting and perfectly combining monetary policy and fiscal policy, it is completely possible to adjust prices."
Chairing a meeting of the Government Standing Committee with ministries and branches on June 8, to curb inflation, Prime Minister Pham Minh Chinh requested that drastic measures be taken to stabilize market prices; provide abundant supply of goods, avoid shortages; increase publicity, transparency, and monitor price declaration and posting of prices according to regulations; and not increase prices of goods and services unreasonably.../.
Source: https://dangcongsan.vn/xa-hoi/giai-toa-ap-luc-lam-phat-667139.html
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