Logo of Phnom Penh Post newspaper Phnom Penh Post - Inflation fueled by rising global oil prices

Inflation fueled by rising global oil prices

Inflation fueled by rising global oil prices

110426_7b
A man pumps petrol into a car at a Petronas station on Mao Tse Toung Boulevard in Phnom Penh yesterday.

Prices in the first quarter increased an average of 3.6 percent on the same quarter last year, driven largely by increases in international fuel prices, according to experts.

Price inflation in Cambodia bottomed out in late 2010, and has gradually been increasing since, according to Olaf Unterroberdoerster, a senior economist at the International Monetary Fund.

“However, at 3.6 percent on average in the first quarter of 2011, inflation has been moderate compared to Cambodia’s neighbours,” he wrote.

Vietnam’s consumer prices climbed 17.51 percent in April from a year earlier, according to figures released Sunday by the Hanoi-based General Statistics Office – the highest increase since December 2008.

The IMF forecasts Cambodia’s inflation to increase to an average of 5 percent in 2011 – from an average 4 percent in 2010 – mainly on the back of rising fuel prices, according to Olaf Unterroberdoerster.

“With inflation pressures on the rise it will be important that policy makers remain vigilant and maintain a prudent monetary and fiscal policy stance.”

Brent crude traded yesterday above US$124.30 on international markets, from below $87 one year ago.

NIS Deputy Director General Khin Song said fuel prices were a main reason behind the overall increase, though most prices remained relatively stable. The NIS-compiled Consumer Price Index  shows fuel prices were a large factor in the price rise, increasing 3.08 percent on average in the first quarter compared year on year, while prices for food and non-alcoholic beverages increased 3.87 percent in the same period.

Other large gains were the price of transport – up an annualised 5.04 percent on the first quarter – and restaurants and hotels costs up 5.66 percent.

“This quarter, the speed of inflation increased a bit, but it is not noticeable – we are on track to keep inflation under 5 percent,” said Khin Song.

Business Research Institute for Cambodia Chief Economist Suzuki Hiroshi wrote that the Consumer Price Index has been stable, though he added domestic prices would likely continue increasing in the coming months.

“I notice that prices increase a little bit [in the second quarter] – that’s seasonal,” he said. “However, I don’t think it will be higher than five percent.”

ADDITIONAL REPORTING BLOOMBERG

MOST VIEWED

  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Brawl marrs football final as Indonesian take gold in seven goal thriller

    The Indonesian men's U22 men national football team were crowned champions of the 32nd SEA Games in Cambodia, defeating Thailand 5-2 in extra time on May 16 at Olympic National Stadium in Phnom Penh. The match was marred by an ugly incident that occured in the 91

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Candlelight Party disqualified from July general election

    The National Election Committee (NEC) has disqualified the Candlelight Party (CP) from contesting the upcoming general election, citing a lack of valid documentation. NEC spokesman Khorn Keomono said the CP failed to fulfil one of the three main requirements: including original documentation proving their registration

  • 1.4 billion dollar Phnom Penh-Bavet expressway due in four years

    The Government, through the Ministry of Public Works and Transport, has officially signed a public-private partnership agreement with a private company for the construction of a Phnom Penh-Bavet Expressway project that will connect the capital to Svay Rieng province. The budget for the project is

  • New Law on Taxation comes into effect

    Cambodia has enacted the eagerly-awaited new Law on Taxation, which aims to improve the national tax regime’s compliance with present and future international standards and economic conditions; encourage accountability, effectiveness and transparency in the collection process; and promote investment in the Kingdom. King Norodom