February’s CPI picks up 1 percent on back of rising food and transport prices

In the first two months of 2022, CPI climbed by 1.68 percent over the same period last year. Core inflation increased by 0.67 percent year-on-year, lower than the general average CPI, which reflects the fluctuation of consumer prices mainly due to rising prices of food and fuel, the GSO official noted.

On February 21, the price of RON 95 gas hit a record high at 26,000 VND per litre, driving up the price of products and services. For example, Grab has added an extra fee of 2,000 VND to its food delivery service. Transport firms are expected to raise their prices as they have done so in the past when petrol prices increased sharply.

In addition, prices of consumer goods have been reported to be on the rise, especially vegetables, as northern Vietnam suffered a historic cold spell that laid waste to a large part of its vegetable production area. It will take a few weeks at least for the price to fall back to a normal level as production recovers.

Aside from petrol and vegetables, the vast majority of commodities have returned to the pre-holiday price level, said a representative from the Ministry of Industry and Trade (MoIT).

Economists have expressed concern over rising prices in the global market as economies are bouncing back from the pandemic, which typically produces stronger demand for commodities. Meanwhile, supply remained inadequate as the global supply chain has been severely disrupted and has not fully recovered.

Key commodities including energy, industrial steel, rare metals and agricultural products have been reported to be at a higher price level compared to pre-pandemic, especially medical supplies due to rising COVID-19 infections.

Earlier, the government announced a reduction in VAT, from 10 percent to 8 percent, in order to combat rising CPI and inflation. Meanwhile, measures have been taken to increase the production of key commodities to meet market demand, according to MoIT.

The ministry said it has been working closely with local governments across the country to better respond to the demand for goods and services in each region while ensuring fluid distribution to prevent shortages of goods and rising prices.

In addition, the ministry's market watch force has been tasked to step up inspection and investigation to deter speculation and hoarding of key commodities, especially petrol. The ministry will continue to publicly broadcast supply and demand information of important goods and services./.

Source: https://en.vietnamplus.vn/