A corner of Vinmart in Ha Noi. CPI in Janurary is predicted to increase by 0.1 per cent to 0.15 per cent against the previous month. — Photo Nhu Hoa

HA NOI (Biz Hub) – Consumer price index (CPI) is expected to show a slight increase though January approaches the Tet (Lunar News Year) in February, according to the Price Management Department under the Ministry of Finance.

The Ministry of Industry and Trade's Viet Nam Industry and Trade Information Centre also predicted the CPI in January to increase by 0.1 per cent to 0.15 per cent against the previous month, excluding an increase in price of health care services, reported the Hai quan newspaper.

The Price Management Department said there are advantages in managing prices this year because of reduction in the prices of commodities on the world market in the future.

Price of crude oil is forecast to reach the lowest recorded level in the near future due to the increase of crude oil output, lifting of sanctions banning crude oil exports for Iran while the Organisation of the Petroleum Exporting Countries (OPEC) will not cut output to retain its market shares, the department reported.

Meanwhile, there are certain important factors regarding stability in prices on the local market, including reduction in oil and petrol prices and high supply of local commodities. The local state offices will continue implementing programmes to stabilise the market, and inspect implementation of price regulations for essential goods, and conduct trade promotion programmes.

The department has set up three delegations to inspect implementation of price management, administration and stabilisation ahead of the Tet festival in many provinces and cities in the North, Central and South from now until January 25.

The department said the prices of numerous goods will be stable in the near future. These include rice, fertilisers, animal feed, and milk products for children under the age of six.

Prices of gas, oil and petrol products are expected to continue falling this month due to stable supply and lower demand on the world market, especially in China.

The department said the price of construction steel will also drop because of cheap steel imports, while local steel makers will continue to reduce the sale of their products and promote trade promotion activities to compete with imports, leading to more reduction in steel prices.

However, some food prices will show a slight increase ahead of the Tet festival, especially fresh food such as meat and seafood products because enterprises have purchased food for processing products to be served in the Tet holidays, as there will be big demand for food during that time.

The weather in January remains cold, so there is still a big demand for garment, hats, footwear and household appliances in the domestic market.

The policies on increasing prices of healthcare and education services will also be factors that could push the CPI up, the department said. – VNS