Processed food tops list of products hit by inflation

The prices of most consumer goods, especially dried and processed foods, have risen sharply in HCM City.

Analysts said though there had been no rise in purchasing power among consumers, the prices of many goods in demand during Tet (the Lunar New Year) had gone up by 7 to 10 per cent.

At some wholesales markets like Binh Tay in District 6 and An Dong and Hoa Binh in District 5, the prices of dried and processed foods have been rising since mid-December.

Medium-quality dried shrimp has soared from VND300,000 (US$15.4) per kilogramme to VND350,000 while high-quality ones cost VND600,000.

Lap xuong (Chinese sausage) has risen from about VND50,000 to VND170,000.

Sugar and vegetable oils are up by at least VND3,000 since last month.

Farms are selling chicken at VND5,000 per kilogramme more than a fortnight ago.

Many businesses have already adjusted prices by at least 10 per cent and plan to increase them by another 5 to 10 per cent ahead of the Tet shopping season.

The analysts warned that food prices would continue to go up until Tet since suppliers would continue to hike their prices.

Suppliers blamed their higher prices on the rise in the cost of raw materials.

Nguyen Kim Ngan, director of the Viet Huong Food Company, said the price of raw pork had jumped by VND4,000 per kilo-gramme and many other foodstuffs by by 5 to 10 per cent.

Nguyen Huu Thien, deputy director of the An Giang Fisheries Export-Import Company, said they also increased the prices of catfish products — twice, by 5 to 12 per cent the first time and by 5 and 15 per cent the second — after fish prices skyrocketed by 40 per cent since last month.

Many city retailers also said that the prices of many goods in demand during Tet had risen.

Huynh Huu Tuan, manager of Citimart’s Binh Thanh District outlet, said almost all producers and distributors, including those supplying processed foods, hiked prices by 7 to 10 per cent in December.

Amid the price hikes, the People’s Committee has told businesses participating in a city price stabilisation programme to keep their prices at committed levels, Le Ngoc Dao, deputy director of the Department of Industry and Trade, said. — VNS

Tags: Vietnam food