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Logo of Phnom Penh Post newspaper Phnom Penh Post - Inflation slows to only 2 per cent

Inflation slows to only 2 per cent

Cambodia's inflation rose by 2.2 per cent in August compared to the same month last year, according to the monthly data from the National Institute of Statistics.

The increase was due to the rise in food and the fluctuation of gasoline prices.

Government officials and economists said the slowdown of Cambodia’s inflation is due to the sound and stabilised macro-economy. They said the country’s inflation is very low compared to other countries in the region.

But, they said the variations of the international commodities and the fluctuation of gasoline prices could be a concern.

“The 2.2 per cent increase in inflation for all the indexed groups in August was due to the sub-groups such as food and non-alcoholic beverages, clothing and footwear, housing, water, electricity, gas and other fuels; furnishings, household maintenance, transport, restaurant and miscellaneous goods and services,” said the report.

The data showed food and non-alcoholic prices rose by 1.9 per cent, beef was up by 13.5 per cent, vegetables rose by 14.2 per cent, price for clothing and footwear went up by 3.5 per cent, and the price for gasoline went up by 4.2 per cent.

Khin Song, Deputy Director General of the National Institute of Statistics, said the country’s inflation is low compared to some other countries in the region. He said the main issue is that some countries from which Cambodia imports goods also have low inflation rates.

“We’ve got a low inflation rate due to our stable food prices,” Khin Song said, adding that although the fuel price is up and down at some points, it didn’t affect inflation too much. Moreover, we see that the exchange rate against US dollar is very stable – this is also the main thing contributing to the decline of inflation,” he said.

Economic minister Keat Chhon said the uncertainty in the EU, US and Chinese economies and the threat of floods are factors that could push up the inflationary rate in the upcoming months.

However, Hiroshi Suzuki, CEO and Chief Economist of the Business Research Institute of Cambodia (BRIC), said: “So far, it has been a good performance. However, I have a little concern about the movement on the international market, especially the price of oil and agriculture products.”

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

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