While the consumer price index (CPI) is not expected to rise much over the first quarter, both consumers and businesses are still facing difficulties in the price of overhead, particularly transport.
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| Transportation fees are forecast to increase as long as the price of petrol continues to go up. |
According to a report from the General Statistics Office (GSO), transportation fees have increased by 5.94% from the final quarter of 2011 and, 18.71% compared to the same period last year.
The transportation industry has seen the largest increase in prices, with an increase of about 33% from the year before. The price for transport of goods has also seen a significant rise.
Air transport fees have gone up nearly 20%, while shipping saw a 2.5%; railway transport saw an increase of 6%.
Transportation fees are forecast to increase as long as the price of petrol continues to go up.
Mounting difficulties
Statistics from the GSO’s report showed that prices of operational costs for businesses, especially for raw materials has increased by more than 2% over the last quarter, and almost 19% from the same quarter of 2011.
The manufacturing sector has taken an across the board hit, including businesses involved in textiles, electronics and high-tech components.
At the same time, these companies are facing a tougher market as demand has been falling.
By March 1st, the inventory lever of this industry has been up by 34.9% compared to the same period last year.
Some other industries also seeing high inventory lever include vegetable and fruit processing (up by 87.2%), steel, cement, fertilizer (all up by over 50%).
Although local banks have lowered their loan interest but local enterprises are have still found difficulties in accessing credit.
