Price management remains an unsolved problem.

(Baonghean.vn) - People hadn't even had time to celebrate the salary increase when gasoline and electricity prices were all adjusted upwards. Along with that, the prices of essential goods are also creeping up ahead of the 5% increase in electricity prices.

In less than two weeks, consumers were shocked by the price increases for two essential commodities: gasoline and electricity. After gasoline prices unexpectedly rose by 460 dong to 24,570 dong per liter in mid-July, on August 1st, the electricity sector drastically increased prices by another 5%.

Also on August 1st, news broke that stores were simultaneously raising the prices of gas and milk. Furthermore, with the new school year about to begin, information about tuition fee increases has also been released, adding to consumer anxiety over the simultaneous price hikes of food and other essential goods.

Ms. Quang, the owner of a grocery store on Hermann Gmeiner Street (Vinh City), said that at the beginning of August, several businesses also proposed increasing product prices. Ms. Quang added that suppliers explained the price increase was due to input costs such as continued adjustments to electricity prices, rising gasoline prices (twice this month with a total increase of nearly 1,000 VND/liter), and other rising expenses. Furthermore, the increase in the minimum wage forced manufacturing businesses to raise workers' wages, leaving them with no other option but to increase prices, depending on the product and supplier. She has already received notifications from several milk companies about price increases, ranging from 5-20% depending on the type of product.

Milk prices increased by 5-20% starting August 1st.

"Business owners like us aren't happy about the price increase either. Business was already slow, and now with the price hike, it's even harder to sell," lamented Ms. Quang.

Rising prices have made life very difficult for people, especially low-income workers. Ms. Ly, originally from Yen Thanh, rented a room on a main road in Hung Dung ward, Vinh City, to live in and sell breakfast food. Her small room, about 10 square meters, houses all four members of her family. Her husband works in construction, with unstable work, and she sells breakfast to support almost the entire family. Previously, her selling rice noodles was relatively profitable, but recently, due to high prices and competition, it has become very difficult. Daily income has shrunk while living expenses continue to rise. Having recently had a baby, and with the house becoming cramped, they decided to install an air conditioner so their child could sleep better, but hearing about the electricity price increase, she shook her head in dismay. “I don’t know how much more the price will increase. This kind of ‘following the trend’ price hike will only add to the difficulties for low-income households like ours,” Ms. Ly confided.

It is known that the previous increase in gasoline prices was not included in the July Consumer Price Index (CPI) basket. Therefore, the August CPI is forecast to rise sharply with price increases for a range of items such as electricity, gas, milk, etc., in addition to the previous increase in gasoline prices.

The risk of high inflation returning has become apparent after these price increases. The impact of these electricity price hikes is significant because they contribute to the price increases of all goods. Electricity prices affect the lives of everyone, from street vendors selling rice noodles to business owners. It is believed that the increase in electricity prices, combined with the two previous increases in gasoline and diesel prices, not to mention the impending increase in coal prices, could cause inflation to flare up again in the last six months of the year.

Rising electricity and fuel prices are creating numerous difficulties for businesses in their production operations.

Rising wages and rising prices are an unwritten rule, a chain reaction of price increases that constantly haunts consumers. Mr. Vo Minh Quan – Director of Naconex Nghe An Joint Stock Company and Chairman of the Vinh City Small and Medium-Sized Enterprise Association – believes that for businesses, rising prices also mean increased input costs, especially electricity and fuel, which are key inputs for all manufacturing and service industries. Purchasing power, already reduced, is now even more strained, and inventories are rising, causing production to stagnate in a vicious cycle. Raising electricity prices at a time when businesses are already facing such difficulties will only exacerbate their struggles and make recovery harder.

The issue of price management remains an open problem with no solution yet.

Thu Huyen