Good control of average inflation

According to the Government's report on market prices in June, the Ministry of Finance stated that, compared to May, prices of basic commodities remained generally stable, and the supply of goods was abundant. Prices of some items fluctuated slightly, including rice and LPG (gasoline-based fuels), contributing to reducing pressure on the overall price level. On average, in the first five months of the year, the CPI increased by 4.03% year-on-year, and core inflation increased by 2.78%.

Commodity prices were basically stable in the first six months of the year. In the photo: People shopping at the supermarket. (Photo: TUE NGHI)

Looking back at the first six months of the year, it can be seen that the price level of goods increased according to the usual pattern during the Lunar New Year holidays and then gradually decreased and remained relatively stable in the following months.

Regarding the management and regulation of prices for several important and essential goods, the Ministry of Finance stated that since the beginning of the year, the Price Management Steering Committee has directed ministries, sectors, and localities to vigorously implement many solutions. In particular, the Steering Committee has focused on ensuring the smooth operation of the supply, circulation, and distribution of goods and services, especially strategic items; and preparing early plans for managing the prices of goods and public services according to market mechanisms.

In addition, proactive, flexible, timely, and effective monetary policy management continues to be implemented in parallel with supportive policies on taxes, fees, and charges to assist people and businesses; closely monitoring the supply and demand and market prices of essential goods to take appropriate management measures.

Regarding specific commodities, the Ministry of Finance stated that the average world price of petroleum products in June decreased compared to May. As of June 20th, the prices of petroleum products have undergone 25 price adjustments, and have now returned to levels close to the beginning of the year. Similarly, LPG gas prices experienced three months of increases and three months of decreases, and have now decreased by 3,000-5,000 VND per 12 kg cylinder compared to May. As for steel billet prices, although they increased slightly compared to May in the Southeast Asian market, according to business reports, domestic construction steel and cement prices in June and the first six months of the year remained basically stable, without any unusual fluctuations.

In the agricultural supplies and products market, the export price of Vietnamese rice in the first six months of the year increased compared to the same period in 2023, ranging from 74 to 165 USD/ton. Domestically, the price of this commodity remained relatively stable, with supply meeting demand. Prices of fertilizers, medical examination and treatment services, and education and training also showed a slight decrease or remained stable, except for the average increase of 14% in tuition fees for higher education and 6% in vocational education. However, the specific tuition fees remained within the price range regulated by the Government.

To proactively address the challenges in price management during the last six months of the year, the Ministry of Finance stated that it will continue to proactively coordinate closely with ministries, sectors, and localities to decisively implement measures in managing, regulating, and stabilizing market prices, especially for essential consumer goods and services.

For state-managed goods and public services that are implementing market-based policies, such as electricity, healthcare, and education, the Ministry of Finance will continue to closely monitor pricing plans and roadmaps to update inflation scenarios as a basis for price management, ensuring that average inflation in 2024 is controlled according to the target set by the National Assembly of 4-4.5%.

Regarding petroleum products, the inter-ministerial committee of the Ministry of Finance and the Ministry of Industry and Trade continues to manage domestic market prices while closely monitoring global price developments and coordinating input to improve the mechanism for managing petroleum prices. Continuing to promote effective and truthful information dissemination will ensure timely, objective, and transparent information on prices and the government's price management activities, especially regarding price fluctuations of important materials and essential goods related to production and people's lives. This measure plays a crucial role in limiting inflationary expectations, stabilizing consumer sentiment, and benefiting both consumers and businesses, particularly during holiday periods throughout the year.

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