Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - Kingdom inflation rises on oil prices

Kingdom inflation rises on oil prices

120227_07

Inflation in Cambodia rose 5.8 per cent year-on-year in January, according to figures from the National Institute of Statistics.

Rising fuel costs had spurred the inflation, which was felt largely in the price of food, officials said.

Will Baxter/Phnom Penh Post
A woman purchases pork at an open-air market in Meanchey district, on the outskirts of Phnom Penh.

Data showed food and non-alcoholic beverage prices in January increased by 7.7 per cent compared to a year earlier.

The price of some items, such as beef and port wine,  increased by as much as 17.5 and 20.3 per cent respectively, and the cost of vegetables rose nearly 10 per cent.

Chheng Kimlong, an economics and business lecturer at the University of Cambodia, said the Chinese and Vietnamese New Year celebrations in January had led to increased demand.

Fluctuations in gasoline costs on the global market had also had an impact on local production, Chheng Kimlong said.

The price of gasoline rose as much as 10.8 per cent last year.

Cambodian gasoline prices hit an all-time high on January 27.

Premium gasoline sold at US$1.40 a litre, stoking fears of  an increase in domestic production cost.

Cheng Kimlong said prices would continue to grow in the coming months in anticipation of the Khmer New Year and the farming season.

Experts said the surge was to be expected given the improvement in the economy, which pushed demand.

“[Gross domestic product] is on the rise, so inflation rates are acceptable. But if our GDP slows, the inflationary rates could become a concern,” NIS deputy director-general Khin Song said.

“The price index is changing as demand speeds up, and local supply cannot yet accommodate it.”

0

Comments

Please, login or register to post a comment

Latest Video

Setting up a drone for flight. Photo supplied

How Cambodia's first drone company is helping farmers

SM Waypoint claims its unmanned aerial vehicles can help local farm and plantation owners increase their yields. Established in September 2015, SM Waypoint now has seven drone pilots, two sales staff and two accountants. Though the company focuses mainly on agricultural projects, the potential uses of the drones are extremely varied, going from measuring exact land height for building drainage systems to finding the most suitable location for special economic zones (SEZs) or factories.

New street food dish shakes things up at Russian Market

Though the bustling food stalls that emerge after dark next to Phnom Penh's Russian Market can seem intimidating to tourists at first glance, there are street food treats to be enjoyed by all, from Kep crab to a new shrimp dish created by the market's owners.

Turkish Embassy calls for closure of Zaman schools

With an attempted coup against the government of President Recep Erdogan quashed only days ago and more than 7,000 alleged conspirators now under arrest, the Turkish ambassador to Cambodia yesterday pressed the govern