The Price Management Department could see a slight reduction in the consumer price index (CPI) in May against last month without too many unexpected fluctuations in prices of essential goods.

May is the harvest season for many kinds of food products so the prices of these commodities are predicted to decrease slightly. At this moment, localities have also strengthened management and stability for price.

The department, under the Ministry of Finance, said the strengthening of management and operation activities for price stabilisation by ministries, sectors and localities would keep market prices from unexpected fluctuations in the coming months.

As of now, the petrol price, one among numerous factors that create pressure on the CPI, has complicated the fluctuations. However, the price increase of this commodity is forecast to be not as high as the world petrol prices. In the past, the petrol price in the domestic market was managed properly by flexible use of the petrol price stabilisation fund, reported vneconomy.vn.

The Steering Committee on Price Management has proposed to the Ministry of Industry and Trade to lead and coordinate with the Ministry of Finance in operating the domestic petrol prices in harmony and using the Price Stabilisation Fund in a proper manner.

They should actively have scenarios dealing with the increase of petrol prices in the second quarter on the world market to create favourable conditions to control the CPI for this year.

The price for the group of housing and construction material products is forecast to increase because the hot weather would increase the prices of electricity and water.

The other main reason for this increase is the high price of steel and steel products in recent months because of China’s production cuts.

However, there are also some factors reducing the pressure on increasing the CPI in May 2018. For instance, the rice price may fall due to an increase in the supply of rice during the rice harvest season. Consumption of some fresh food items such as pork and poultry meat often reduces during the hot weather.

The department said that in May and especially in the second quarter, the price management and operation activities must be very cautious, aiming to control the CPI growth rate every month to less than 0.2 per cent. This rate would create favourable conditions for price operations by this year-end, especially for the control in the price of goods managed by the State.

The Ministry of Agriculture and Rural Development was required to monitor closely the market price of agricultural products. It must cooperate with the Ministry of Industry and Trade to balance the supply and demand of essential goods for the domestic market, including rice, pork, sugar and salt, to ensure stabilisation of the market.

The ministry was asked to study and restructure the domestic market, while continuing to maintain the traditional export markets and seek new export markets for key agricultural commodities to stabilise the market and to improve the efficiency of agricultural production. — VNS