HA NOI — Inflation in Ha Noi this month is forecast by the city's Department of Industry and Trade to continue rising – with prices expected to rise 1.3-1.5 per cent over last month's levels.
Inflation will continue rising, the department says, because banks were pumping large amounts of money into circulation to meet the demand for payment of salaries and bonuses at the end of the lunar year, as well as the needs of production, business and services.
Global inflation, particularly in major trading partners like neighbouring China, will also affect domestic prices, the department says.
Prices for essential goods typically rise in the period before the Tet (lunar new year) holiday, when consumer demand climbs by an estimated 15 per cent, the department says, urging local producers and distributors to stock sufficient supplies of goods to prevent price shocks caused by shortages during the holiday next month.
The Northern Food Corporation has plans to stockpile 2,600 tonnes of rice, while petroleum distributor Petrolimex will stockpile 40 million litres of petrol for the holidays. Beverage maker Habeco will stock up with 75 million litres of drinks, and Ha Noi Confectionery Joint Stock Co will ensure a supply of 400 tonnes of sweets.
Fourteen enterprises that received interest-free loans worth VND400 billion (US$19 million) have already stocked up on nine essential goods for Tet, ensuring demand would be met through March.
The department expects the demand next month for 3,000 tonnes of beef, 6,000 tonnes of poultry, 5,000 tonnes of fresh and frozen seafood, and 90,000 tonnes of fruits and vegetables.
The department forecast that goods consumption in Ha Noi would soar by 20-22 per cent between December and February, forecasting retail sales of VND20.2 trillion ($961.9 million).
Ha Noi saw inflation of 9.56 per cent in 2010, fuelled by a rise of 1.83 per cent in December alone, according to the Ha Noi Statistics Office.Source: vnagency.com.vn
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