Control inflation well, remove difficulties for production, business and people's lives

Deputy Prime Minister Le Minh Khai speaks.

According to Deputy Prime Minister Le Minh Khai, price management is timely, fast and effective. On January 5, the Government met with localities, the Prime Minister issued Resolution 01/NQ-CP (on key tasks and solutions to implement the Socio -Economic Development Plan and State Budget Estimates for 2024), specifying tasks, solutions and goals, including price management. The Deputy Prime Minister asked the members of the Steering Committee to focus on identifying key tasks for 2024, managing fiscal and monetary policies, and other macroeconomic policies in a synchronous, effective, timely and appropriate manner to the situation.

Emphasizing that there is only half a month left until the Lunar New Year, the Standing Secretariat has issued Directive No. 26-CT/TW, the Prime Minister has issued Directive No. 30/CT-TTg, the Deputy Prime Minister requested to focus on solutions to ensure goods, market supply and demand, especially essential needs during the Tet holiday, so that people can enjoy the Spring Festival safely, healthily, economically, effectively, creating conditions for economic recovery and development as set out in the Directives.

Along with that, focus on solutions to be proactive early on for goods and services priced by the State. Considering that in 2023, the prices of some goods and services priced by the State were adjusted promptly but were also very passive, the Deputy Prime Minister directed that these contents must be noted this year, and relevant ministries, branches and agencies must adjust prices accordingly.

The Deputy Prime Minister also requested that, for activities to ensure production and business, timely supply and demand of goods, especially food, foodstuffs, essential goods, energy, etc., "If done well, we will be proactive in controlling prices, creating a basis to contribute to stabilizing the macro economy, recovering and developing the economy, and achieving the goals set by the National Assembly and the Government in the 2024 socio-economic development plan," the Deputy Prime Minister emphasized.

Noting that the Law on Prices (amended) will take effect from July 1, 2024, Deputy Prime Minister Le Minh Khai said that the implementation, concretization, and guidance of the Law are very important; he asked delegates to give their opinions to better implement the Law, as a basis for management in 2024 and the following years.

According to Deputy Minister of Finance Le Tan Can, the market price level in 2023 fluctuated upward at the beginning of the year, then gradually decreased and increased slightly again in the fourth quarter. On average, in 2023, the CPI increased by 3.25% over the same period last year, within the inflation target set by the National Assembly and the Government. The average core inflation in 2023 increased by 4.16% compared to 2022, 0.91% higher than the average CPI increase, mainly due to a number of items such as gasoline and gas prices decreasing, causing the general inflation to decrease but belonging to the group of goods excluded from the basic inflation calculation list, at the same time, some items that account for a large proportion in the basic inflation calculation basket tend to increase for a long time, such as "Rental housing" and "Eating out of home".

The reason for the CPI increase in 2023 was pointed out by the Ministry of Finance as the price index of the education group increased by 7.44% compared to the previous year due to some localities increasing tuition fees for the 2023-2024 school year according to the roadmap of Decree No. 81/2021/ND-CP, causing the overall CPI to increase by 0.46%. The price index of the housing and construction materials group increased by 6.58% compared to the previous year, causing the overall CPI to increase by 1.24% due to the increase in cement and sand prices following the prices of raw materials, fuels, and input materials, along with the high increase in housing rental prices. In addition, the price index of the food, foodstuffs, electricity, beverages and tobacco, medicine and medical services, and other goods and services also increased, causing the CPI to increase.

On the contrary, some commodity groups such as gasoline, gas, postal services, and telecommunications decreased in price, causing the overall CPI to decrease.

To proactively respond to rising inflationary pressures, the Government, the Prime Minister, the Deputy Prime Minister - Head of the Steering Committee for Price Management have directed ministries, branches and localities to resolutely implement many macroeconomic solutions such as ensuring the supply of essential consumer goods and important input materials for production. Price management is proactively implemented, prices of state-managed goods are carefully managed in the first months of the year to create a safe space for inflation control in the whole year of 2023, and in the following quarters, it is implemented flexibly according to CPI developments at appropriate levels and doses. Managing gasoline prices in line with world price developments, shortening the management cycle to 01 week. Timely issuing support policies for exemption, reduction and extension of taxes, fees, charges, land use fees to help reduce pressure on price levels...

Assessing that 2024 will be full of difficulties and challenges, especially unfavorable external factors and internal difficulties, in order to carry out the tasks set by the National Assembly, namely GDP growth of 6-6.5% and an average CPI growth rate of 4-4.5%, opinions at the meeting said that price management and operation need to ensure good control of inflation, while continuing to support the removal of difficulties for production, business and people's lives. Continue to implement the roadmap for market prices of public services and goods managed by the State at appropriate levels and doses according to developments in the consumer price index; promote the completion of the legal system on prices, and implement the Law on Prices (amended).

Based on the synthesis of information and updated forecasts of price trends of important essential commodities that are the focus of price management and operation in 2024, synthesizing assessment information from the Ministry of Planning and Investment and the State Bank on factors affecting inflation in 2024, the Steering Committee's Working Group proposed 3 inflation scenarios with forecasts of average CPI increases of 3.52%, 4.03% and 4.5%.

Source