Control market prices, do not let inflation put pressure on salary increases

Implementing the new wage policy from July 1, 2024, especially from 2025, the wage level will continue to be adjusted to increase by an average of about 7%/year. However, the problem is to implement solutions to prevent the situation of "wages have not increased, prices have increased".

Good control of food prices is a positive solution to reduce pressure on inflation. Photo: Vu Long

Price index for the first 5 months of 2024. Source: General Statistics Office

Inflation in 2024 is not a concern

According to the General Statistics Office (Ministry of Planning and Investment), the average consumer price index (CPI) in the first 5 months of 2024 increased by 4.03% over the same period last year, but many economic experts believe that the CPI for the whole year of 2024 will still be kept below 4%, in line with the target set by the National Assembly.

Sharing with Lao Dong reporter, Associate Professor Dr. Nguyen Duc Do - Deputy Director of the Institute of Financial Economics (Academy of Finance), emphasized: From now until the end of the year, the inflation issue is no longer a concern, the prices of consumer goods are stable, especially the items in the "basket" of CPI calculation. Dr. Nguyen Duc Do also commented that inflation compared to the same period is likely to have peaked in May 2024 and will decrease sharply in June, July and August.

"If the prices of healthcare and education services are not adjusted, the average inflation for the whole year of 2024 is forecast to be only 3-3.5%, even if adjusted, it will be below 4%. The salary increase is only related to the public sector and is not large in scale, so it will not have much impact on inflation," Dr. Nguyen Duc Do affirmed.

Mr. Vu Tuan Anh - Chairman of JCI Vietnam 2022 emphasized that Vietnam's inflation could receive positive support from the world 's commodity price level when it is forecasted that global inflation could cool down this year.

In addition, an optimistic factor is that domestic agricultural production has many advantages, abundant food supply to meet domestic consumption and export needs will be an important factor in reducing pressure on the general price level, therefore, inflation this year will remain under control.

Good control of food prices is a positive solution to reduce pressure on inflation. Photo: Vu Long

Don't let small traders "follow suit" when increasing wages

A reality that has been happening for many years is that every time the Government adjusts regulations and increases wages for workers, almost immediately, small traders in the market "follow suit", taking advantage of the wage increase to increase prices.

"To achieve the goal of increasing income for workers, in addition to increasing wages, we must also control the "galloping" speed of goods, especially the prices of food, fuel, and medical and educational services," Mr. Vu Tuan Anh frankly shared.

Ms. Nguyen Thi Huong - General Director of the General Statistics Office - emphasized that, to control inflation in 2024 to achieve the target set by the National Assembly, it is necessary to drastically implement many solutions.

In particular, in order to increase the prices of goods and services managed by the State such as electricity, medical services, education, etc., ministries and branches need to plan, develop plans and roadmaps to adjust the prices of the goods they manage specifically each month, so that the Government's Price Management Board can proactively review and decide the time and level of price adjustment of goods managed by the State in a synchronous, unified and market-appropriate manner while still ensuring the target of controlling inflation.

"Avoid adjusting prices at the same time as the salary increase on July 1, 2024, as this can easily cause expected inflation, which will cause prices of other goods and services to increase as well," Ms. Huong noted.

Ms. Nguyen Thu Oanh - Director of the Price Statistics Department (General Statistics Office) also emphasized the need to ensure smooth supply, circulation and distribution of goods and services, especially for gasoline and strategic goods.

"In particular, ministries, branches and localities need to closely monitor price and inflation developments in the world, promptly warn of risks affecting prices and inflation in Vietnam to have appropriate response measures to ensure supply and stabilize domestic prices.

At the same time, closely monitor the price movements of essential goods (food, foodstuffs, pork, gasoline, gas...) to have management solutions and proactively prepare goods sources at the end of the year to limit price increases. Implement well the inspection and examination of the listing process to implement policies and regulations on prices. Strictly handle violations and spread of false information that cause instability in market prices" - Ms. Oanh said.