Subscribe Search

Search form

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

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.”



  • Kak Channthy, Cambodian Space Project frontwoman, killed in crash at 38 [Updated]

    Updated 5:05pm, Tuesday, March 20, 2018 Kak Channthy, frontwoman of popular The Cambodian Space Project, was killed Tuesday morning in a traffic accident in Phnom Penh. She was 38. Channthy, the internationally recognised singer-songwriter also known as “Srey Thy”, was reportedly travelling in a tuk-tuk on the city's

  • Australian police investigating death threat against Kem Ley's widow

    Updated: 10:17am, Friday March 23, 2018 Australian authorities on Thursday confirmed they have launched an investigation into a crudely written death threat sent tothe family of slain political analyst Kem Ley and Victoria state MP Hong Lim. The typed letter, reported to Victoria police last week, is

  • Apparel groups including H&M and Gap urge Cambodia garment industry reform, seek meeting with Hun Sen

    A group representing some of the largest apparel brands in the US and Europe – including Gap, H&M and ASOS – expressed “growing concern” on Tuesday over several controversial labour laws and ongoing court cases against unionists described as restrictive and unjust. In an open letter

  • Cambodia, states clash at UN session

    Cambodia traded shots with the international community in a heated exchange at the UN Human Rights Council in Geneva on Thursday evening, with states condemning the Kingdom’s ongoing crackdown on the political opposition and civil society, and an increasingly agitated Cambodia accusing member states