Prices for goods, services to rise

Higher demand and shortages of capital for increased production during the final month’s of the year will increase the likelihood of price increasing for many essential goods this month.

In its forecast on markets and prices in December, the Ministry of Finance’s Price Management Department said the production growth rate had exceeded that forecasted, but there were many difficulties in sourcing capital due to high interest rates, as well as the additional problem of electricity shortages.

Disease and natural disasters and increased export activities via border gates prior to the approaching Lunar New Year in February would also create pressure on the supply of goods and services, leading to increased prices, the department said.

The increase in gold and US dollar prices in recent months and demand of goods and services for the approaching festive period would add to the pressure for price rises in goods and services on the domestic market.

The department predicted that the prices of some fresh food items such as pork, beef, poultry and seafood in December would continue to increase due to high demand over the Christmas and Lunar New Year while supplies remained low.

The surge in world sugar prices in recent months and high domestic demand towards the year-end would also mean a slight increase in December.

The department also expected the price of finished steel products to increase this month due to high prices of steel ingots on the world market and increased domestic demand.

Gas prices will also increase because of higher global prices.

Meanwhile, the department said there are many factors that could contribute to a decline in prices of some other goods. Those products include cement, petrol, oil, electricity and medicine.

The national average consumer price index in 11 months has exceeded the annual forecast with a year-on-year increase of 8.96 per cent, the General Statistics Office (GSO) has announced. — VNS

Tags: Vietnam prices