Vietnam: Prices of essential goods to stabilise

The inflation rate is expected to rise by 1.2 to 1.4 per cent in June, with price increases slowing in most categories of agricultural commodities and other essential goods, the director of the price management department of the Ministry of Finance, Nguyen Tien Thoa, has said.

Rice prices were expected to stabilise or decline slightly due to an increasing domestic supply and low export demand compared to that enjoyed by competing rice-growing nations like Thailand, which was expected to see exports rise due to rising demand in Africa and the Middle East, the department reported.

Meat prices surged in the first half of June but were expected to stabilise, while the cost of fruits and vegetables were predicted to continue decreasing.

The price of sugar has risen sharply and is expected to continue to do so due to rising demand in the same region, while supplies have declined following a late sugar cane harvest in Brazil, a major world supplier.

Gas pains <----

Energy prices have also continued to be affected by the political turmoil in the Middle East and North Africa. Prices of liquified petroleum gas (LPG) have surged globally, although reduced European and North American demand in the summer months should help ease price pressures.

LPG prices in June fell by US$80 per tonne from the previous month. Last week, four out of five domestic LPG distributors announced that they would reduce prices by 4-7.7 per cent by the end of the month.

The department predicted that domestic demand for cooking gas would total 90,000 tonnes in June, with 37,500 tonnes coming from imports.

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