Actively offering appropriate policies in price management

The average consumer price index (CPI) in 11 months of 2021 rose by 1.84%. Photo: Hapro

The 6th consecutive year of successful inflation control

Reporting on performance in 2021, Deputy Director of the Price Management Department, Dang Cong Khoi said price management and inflation control have reached the target. The average consumer price index (CPI) in the first eleven months of 2021 rose by 1.84% – the lowest rise since 2016. Along with that, the price level was controlled so that there were no sudden price fluctuations, especially for some essential goods and services even in the peak period of the pandemic that might disrupt supply.

“Thereby, price management has played a good role in stabilizing the macro-economy, inflation has been controlled and remained at a low level, creating a driving force to support economic recovery. This is the sixth consecutive year of successful inflation control," said Dang Cong Khoi.

The representative of the Price Management Department also said inflation in 2021 has been controlled, continuing to meet the targets set by the National Assembly and the Government. So far, it can be confirmed that the CPI will reach a low level of around 2% (average CPI in the first eleven months of the year is 1.84%) which is a mark in the Government's price management strategy amid the Covid-19 pandemic.

The initiative in forecasts, impact assessment and developing price control scenarios and enhancing coordination among ministries, agencies and localities is a key factor in helping inflation in 2021 remain controlled at a low level, creating a basis to implement fiscal, monetary policies and other macro policies.

In addition, the inspection of the compliance with the law on prices continued to be identified as a key task in the work program of the Price Management Department in 2021 and was integrated with other activities such as grasping the actual situation and problems on the implementation of policies on prices to have timely solutions for violations, thereby making the price management more efficient.

However, due to the Covid-19 pandemic and following the direction of the Ministry of Finance on inspection work, the Price Management Department has inspected 62 units, accounting for 41.6% of enterprises subject to inspection in 2021. Through inspection, it was found that businesses and units have understood and complied with the provisions of the law on prices, including price declaration and listing; the units have provided goods and services in accordance with the declared level; and specific regulations on the policy of trade discount, price reduction, payment discount according to the declared amount.

Sensitivity, bravery and fairness is a must

The leader of the Price Management Department said in 2022, the unit will focus on improving the legal system on prices, including the development of the Price Law (amended) and guiding documents to report to the Government.

For synthesis, analysis, forecast and management of price, the Price Management Department will further coordinate with ministries, government agencies and localities to seriously and effectively implement price management and stabilization to control inflation according to the targets set out by the National Assembly and the Government and relevant guiding documents.

Regarding inflation control, in 2022, the National Assembly sets an inflation target of about 4%. To accomplish the above goal, the Price Management Department said the department will continue close coordination with ministries, government agencies and localities to strictly and effectively manage and stabilize prices.

Accordingly, the Price Management Department continues to perform its role as the standing body of the Prime Minister's Price Management Steering Committee, focusing on price management to control inflation according to the assigned targets and advising on the implementation of the market roadmap for public services and important and essential goods.

Furthermore, the Price Management Department continues to closely monitor market price movements of essential goods to promptly propose solutions to ensure a balance between supply and demand in order to stabilize market prices, especially for goods facing a shortage of supply due to the impact of natural disasters, epidemics and items in high demand before, during and after Tet.

Speaking at the conference, Deputy Minister of Finance Ta Anh Tuan affirmed that price management has recorded many remarkable achievements in both long-term and regular work; major policy projects have been also consolidated.

The Price Management Department has submitted to the Ministry of Finance to propose to the Government the formulation of the Price Law (amended) towards a comprehensive amendment of the law and a change in thought of price management. A number of important mechanisms and policies related to price regulations and assessment have also been revised in accordance with practice.

The Ministry of Finance has been highly appreciated by ministries and government agencies for its role in price steering. The Price Management Department has also advised the Ministry of Finance to closely coordinate with other ministries and government agencies to conduct flexible price management for important and essential commodities.

The Deputy Minister said the price management in 2022 will face many difficulties and challenges due to the on-going pandemic and competition of big countries.

He noted that the Price Management Department should be sensitive, brave and fair in price management; and carefully assess emerging issues on prices to proactively issue and implement appropriate policies.

Regarding mechanisms and policies, the Deputy Minister proposed to focus on amending the Law on Prices according to the market mechanism and decentralization in price management; strengthen the state management on policy formulation, inspection and control; soon put into effect price management regulations with good international practices; modernize and enhance the application of information technology in price management and upgrade the database on prices.