Hanoi, July 14 -- The Government has ordered ministries, agencies and local authorities to sharpen forecasting capabilities and build response scenarios to keep inflation contained.

They were told to manage prices of essential goods with caution and flexibility, warning that room to absorb price shocks is narrowing.

Headline CPI closes in on target

According to the Ministry of Finance, the consumer price index (CPI) rose 4.38% year-on-year in the first half, while core inflation climbed 4.12%. Fuel prices were the main driver, surging an average 19.13% in the wake of the Middle East conflict and contributing roughly 1.35 percentage points to headline CPI growth.

Notably, coordinated fiscal and monetary policies, along with supply-dema...