Economy Vietnam Q1 inflation lowest in 3 years
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March prices fell 0.21 percent over February, according to the General Statistics Office (GSO). There was a fall in the prices of seven of 11 items in the basket of consumer goods and services that make up the index.
According to Do Thi Ngoc, director of the GSO, the reasons for the low inflation rate were the African swine fever outbreak and lower petrol and gas prices during the period. A 1.42 percent fall in the prices of essential foods, including eating out, was the biggest drag on the CPI.
The African swine fever epidemic has meant that in some places pork prices have fallen by 40 percent since the beginning of February.
Other notable decreases were of the prices of clothing and telecommunications, which were down by 0.17 percent and 0.07 percent.
At a recent meeting of the Steering Committee on Price Management Thursday, Deputy Prime Minister Vuong Dinh Hue said in the current scenario the target of keeping this year’s inflation at 3.3-3.9 percent is within reach.
CPI in 2018 increased by 3.54 percent, well below the 4 percent target set by the National Assembly.
Questions & Answers
Q.What were the main factors contributing to the low inflation rate in Q1?
What were the main factors contributing to the low inflation rate in Q1?
The low inflation rate was primarily due to the African swine fever outbreak and reduced petrol and gas prices. Also, a significant fall in essential food prices, including eating out, heavily influenced the Consumer Price Index.
Q.Which specific categories of goods and services experienced price decreases?
Which specific categories of goods and services experienced price decreases?
Seven of the 11 items in the consumer goods and services basket saw price falls. Notable decreases included essential foods, clothing down by 0.17 percent, and telecommunications which dropped by 0.07 percent.
Q.How did pork prices change due to the African swine fever epidemic?
How did pork prices change due to the African swine fever epidemic?
The African swine fever epidemic led to substantial reductions in pork prices. In some areas, pork prices have fallen by as much as 40 percent since the beginning of February.
Q.Is the government confident about meeting its inflation target for the current year?
Is the government confident about meeting its inflation target for the current year?
Yes, Deputy Prime Minister Vuong Dinh Hue stated that the target of keeping this year's inflation between 3.3 and 3.9 percent is considered to be within reach in the current economic scenario.
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