Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia's inflation rate fell to 3 per cent in 2012

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

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 [email protected]
 

MOST VIEWED

  • Proof giants walked among us humans?

    For years a debate has waged about whether certain bas relief carvings at the 12th-century To Prohm Temple, one of the most popular attractions at the Angkor Wat Temple Complex in Siem Reap province, depicted dinosaurs or some rather less exotic and more contemporary animal,

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • Japan bank buys major stake in ANZ Royal Bank

    Japan's largest bank acquired more than half of ANZ’s shares in Cambodia on Thursday, according to a statement from Kith Meng’s Royal Group. Japan's JTrust Bank, announced that they had acquired a 55% of stake in ANZ Royal Bank. According to a Royal Group