Inflation control successes

The Government’s efforts to control inflation appear to be working, with the price pressure showing signs of easing.

The June consumer price index (CPI) was up 2.14% month-on-month, compared to 3.92 per cent in May, and officials and experts project the slowdown to continue in July and the rest of the year.

In the commodity basket for calculating CPI, food and foodstuff prices, however, increased 4.29% in June compared to 2.19% in May.

Nguyen Minh Phong, head of research at the Ha Noi Institute for Socio-Economic Development Studies, thinks the inflation may come down to 1.5% in July. But there may not be a sharp decline because global commodity and oil prices are still in an upward trend.

Deputy Minister of Planning and Investment Cao Viet Sinh expects the price rise to slow down in the coming months since the second half is usually not the high season for imports.

Without giving specific numbers, he said pressure on food prices would reduce with the bumper crop that is being harvested.

The commitment by the Government to control prices of certain essential commodities and services until the end of the year would also help, he said. (VNS)