Many items increase in price
Still eating at the familiar noodle shop for nearly 3 years, Mr. Phan Anh (Long Bien District, Hanoi) was surprised when the shop owner announced an increase of 5,000 VND to 50,000 VND/bowl starting from August 1st. He was told that the reason was the sharp increase in the price of ingredients recently, along with the rising cost of noodles, making it impossible to keep the price of a bowl of noodles as before.
He sighed and said: "I go to the market every day and see one item increasing in price, followed by another. For example, the cooking oil can I usually buy has increased from 140,000 VND to over 150,000 VND/5 liters, rice and instant noodles have also increased by tens of thousands. Monthly expenses have to be adjusted significantly."
Associate Professor Dr. Nguyen Thuong Lang - Institute of Commerce and International Economics, National Economics University - observed that the trend of price increases has been evident since the second quarter of 2024.
According to the General Statistics Office, the CPI in July 2024 increased by 0.48% compared to the previous month, up 1.89% compared to December 2023, and up 4.36% compared to the same period last year. On average, in the first 7 months of 2024, the CPI increased by 4.12% compared to the same period last year. Core inflation in July 2024 increased by 0.36% compared to the previous month, up 2.61% compared to the same period last year.
Additionally, maintaining low deposit interest rates of about 4 - 4.5% per year increases the amount of money in circulation. The rapid increase in international tourists to Vietnam, thanks to significant amendments in visa issuance policies, also contributes to increasing the total demand of the economy, creating the potential for price increases.
Price management challenges under significant global and regional pressure
To control inflation while promoting economic growth, Associate Professor Dr. Nguyen Thuong Lang believes that comprehensive solutions are needed in terms of awareness, economics, finance, administrative-legal measures, along with the involvement of relevant entities.
Accordingly, from the State's perspective, there should be significant reserves or mechanisms to supply goods to the market when necessary. Establishing appropriate price ceilings for essential items. Enhancing market management efficiency when there are signs of speculative price increases or unjustified price hikes...
"For businesses, restructuring, adopting new business models, and lean management to save costs, leveraging all support to save costs are necessary. For the public, it is important to maintain psychological stability, not follow crowd psychology, not create a rush to buy goods when there is no real need, minimize hoarding mentality, and have reasonable, economical, and sustainable personal spending methods," he said.
Dr. Can Van Luc - BIDV Training and Research Institute - proposed continuing to improve and effectively implement policies on labor, wages, and labor relations in both the public and private sectors. This will help improve the income and living standards of workers.
Research and soon implement comprehensive wage policies and solutions in line with human resource organization solutions, increasing labor productivity. It is necessary to soon establish a National Productivity Commission to help enhance the effectiveness of wage reform policies and improve labor productivity, thereby increasing national competitiveness.
