Amid concerns about high inflation in 2021, on June 2, the Ministry of Finance (MoF) said that the price increases of some essential goods in 2021 were forecasted by the MoF and other ministries in the price management scenario and reported to the Prime Minister right from the end of 2020.
Some commodities had prices increased because input materials and demand surged, such as animal feed, construction materials (especially steel), and petrol. For commodities priced by the State, recently, the air transportation service has been adjusted the cost structure in the price. However, this adjustment still ensures that the airfares are within the price bracket set by the competent authority.
Although this matter is causing pressure on the domestic price level, it has been calculated in the price management scenarios to control the average inflation in 2021 at below 4 percent. If there are no sudden factors, the control of the average consumer price index for the whole year 2021 at 4 percent will still be achieved.
The Ministry of Finance also admitted that there are still potential risks to inflation control because the prices of fuel, steel billet, and scrap steel in the world may climb drastically; gasoline prices continue to rise, causing domestic prices to advance accordingly; trade tensions in countries, especially the US and China, and geopolitical tensions in many territories.
Some commodities had prices increased because input materials and demand surged, such as animal feed, construction materials (especially steel), and petrol. For commodities priced by the State, recently, the air transportation service has been adjusted the cost structure in the price. However, this adjustment still ensures that the airfares are within the price bracket set by the competent authority.
Although this matter is causing pressure on the domestic price level, it has been calculated in the price management scenarios to control the average inflation in 2021 at below 4 percent. If there are no sudden factors, the control of the average consumer price index for the whole year 2021 at 4 percent will still be achieved.
The Ministry of Finance also admitted that there are still potential risks to inflation control because the prices of fuel, steel billet, and scrap steel in the world may climb drastically; gasoline prices continue to rise, causing domestic prices to advance accordingly; trade tensions in countries, especially the US and China, and geopolitical tensions in many territories.
