Price management remains an unsolved problem

(Baonghean.vn) - People have not yet had time to celebrate the salary increase when the prices of gasoline, electricity... have all been adjusted up. Along with that, the prices of essential goods are also inching up before the event of the 5% increase in electricity prices.

In less than two weeks, consumers were shocked by the decision to increase the prices of two essential commodities: gasoline and electricity. After the price of gasoline suddenly increased by VND460 to VND24,570 per liter in mid-July, on August 1, the electricity industry increased the price by another 5%.

Also on August 1, information was released that stores were simultaneously raising gas and milk prices. Not only that, the new school year is about to begin, information about tuition increases has also been released, making consumers more worried about the simultaneous price increases of food and foodstuffs...

Ms. Quang - Owner of a grocery store on Hermann Gmeiner Street (Vinh City) said that in early August, some businesses also proposed to increase product prices. Ms. Quang added that suppliers explained the price increase was due to input pressure such as continued adjustment of electricity, increased gasoline (twice in a month with a total increase of nearly 1,000 VND/liter), and then other costs also increased. In addition, the increase in minimum wage forced manufacturing businesses to also increase workers' wages, so there was no other way but to increase prices, depending on each product and supplier. Currently, she has received notices from some milk companies about increasing product prices, from 5-20% depending on the type.

Milk prices increased by 5-20% from August 1.

“Business owners like us are not happy about the news of price increases. Business is already sluggish, now the price increase makes it even harder to sell,” Ms. Quang lamented.

Rising prices have made life very difficult for people, especially low-income workers. Ms. Ly, from Yen Thanh, moved to Vinh to rent a house on the main road in Hung Dung ward to both live and sell breakfast. In a small room of about 10 square meters, all four family members live. Her husband works in construction, with an unstable job, and she sells breakfast to support almost the whole family. Previously, her rice cake business was relatively favorable, but recently, because of high prices and competition, it has been very difficult to sell. Daily income has shrunk while living expenses have increased continuously. Having just given birth to a small child, the house is cramped and the couple decided to install an air conditioner for their child to sleep well, but when she heard about the increase in electricity prices, she shook her head in dismay. "We don't know how much the price will increase. With this kind of price increase, low-income households like us will have more difficulties." - Ms. Ly confided.

It is known that the previous increase in gasoline prices was not included in the consumer price index (CPI) basket for July. Therefore, the CPI for August is forecast to increase sharply with the price increase of a series of items such as electricity, gas, milk..., plus the previous increase in gasoline prices.

The risk of high inflation returning after these price increases has been present. The impact of these electricity price increases is huge because it contributes to the increase in prices of all goods. Because electricity prices affect the lives of everyone, from the banh muot seller to the business owner. According to the assessment, the increase in electricity prices combined with the two previous increases in gasoline prices, not to mention the upcoming increase in coal prices, could cause inflation to flare up again in the last 6 months of the year.

Rising electricity and gasoline prices cause business production to face additional difficulties.

Salary increases and prices increase are unwritten rules, a chain reaction of price increases that always haunts consumers. Mr. Vo Minh Quan - Director of Naconex Nghe An Joint Stock Company, Chairman of the Vinh City Small and Medium Enterprises Association, said that for businesses, price increases also mean increased input costs, especially electricity and gasoline, which are input factors for all manufacturing and service industries. Purchasing power has decreased and now continues to be low, inventories are increasing, causing production to stagnate, in a vicious cycle. Increasing electricity prices at a time when businesses are already facing difficulties will make businesses struggle even more and make it difficult to recover.

The story of price management is still an open problem.

Thu Huyen