Fuel prices hike raises CPI by 0.4%: MOF

Vietnam consumer price index(CPI) will rise by 0.4%, directly reflecting the recent fuel prices hike on March 29

Vietnam consumer price index(CPI) will rise by 0.4%, directly reflecting the recent fuel prices hike on March 29, Nguyen Tien Thoa, the Ministry of Finance’s Head of Price Control Department told local media behind the government’s regular meeting.

The retail prices of fuel increased by between VND2,000-VND2,800/liter on March 29, totaling a nearly 35% increase in one month.

This hike is unavoidable as the world prices of fuel have climbed by between 12-17% from the previous fuel increase on February 24. It only accounts for between 40-50% of an adjustment must. The retail prices of fuel in the Southern Asia country are currently VND3,500 lower than other countries in the area, Thoa said.

The domestic fuel prices will be adjusted following the world prices, Vu Van Ninh, Minister of Finance, said.

Earlier, MoF has cut the tax import on fuel to 0% to reduce the pressure on state budget as the country is taking measures to curb inflation.

Vietnam consumer price index(CPI) posted a 34 month high of 2.17% in March, raising CPI in the first quarter to 6.12%.Prices of transportation staple posted highest increase in the third month of this year with 6.69% on-month on Feb fuel hike.

Vietnam CPI is likely to rise by between 1.6-1.8% in April as the prices of essential goods continue upward momentum, the online newspaper VTV News reported on March 30, citing the Ministry of Industry and Trade’s Price Control Department. – Stoxplus.com

Tags: Vietnam CPI, Vietnam CPI 2011, Vietnam economic, Vietnam economy