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Cambodia's inflation rate fell to 3 per cent in 2012

Cambodia's inflation rate fell to an annual three per cent last year, down from 4.9 per cent a year earlier, according to data from the National Bank of Cambodia released in late January.

Chea Chanto, the bank’s governor, told an annual meeting in late January that Cambodia’s economy had performed very well last year because of controlled exchange rates and prices of food and goods.

Officials said the country’s macro-economy had performed well and  declining inflation rates in neighbouring countries had also contributed to the economy’s success.

“The stability of food prices and the riel currency is a big contribution to the economy,” Chanto said.

“The three per cent inflation rate last year is low and manageable.”

Chanto said the Kingdom’s currency had appreciated about 1.7 per cent against the greenback compared with 2011 and the gross official reserve had reached $3.7 billion, which could insure imports for about four and a half months.  

Khin Song, deputy director general at the Cambodian National Institute of Statistics, said the Kingdom had been able to produce more goods nationally in  order to supply the market last year.

“We have really stable prices for food and meat, as we can produce more — that’s why the inflation rate is really low, and we have no concern because it is manageable,” he told the Post, adding that the price of food had dropped from the second quarter of last year.

“At the same time, if we look at inflation in our neighbouring countries, they were also low and that is another contribution for us,” Song said.

The data shows the country recorded 2.2 per cent inflation in December last year compared to the same period of 2011.

The Asian Development Bank and the International Monetary Fund predicted in October last year that the country’s inflation in 2012 would be three per cent and 3.5 per cent respectively.

Chanto said Cambodia’s economic growth of seven per cent last year was supported by an increase in the agricultural sector of 3.2 per cent.

He said the industry sector had grown by 13.3 per cent and the services sector by five per cent.

Chanto predicted the same growth rate in 2013.

To contact the reporter on this story: May Kunmakara at kunmakara.may@phnompenhpost.com
 

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