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

  • Omicron patients can stay home: PM

    The Ministry of Health has issued a directive on the treatment of people who have tested positive for the highly transmissible Omicron coronavirus variant, following a suggestion from Prime Minister Hun Sen on the night of January 21. The directive permits home quarantine for those who

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • Mr Pancake or M Crepe? Tasty by any title

    Crowds of people gather around a lone man with a mobile food cart every day at around 2pm in front of the Institut Francais du Cambodge to order what many say are the best crepes in Phnom Penh. To some – even to the man making

  • Phnom Penh condo market loses steam

    Just four new condominiums were launched for sale last year in the capital, down from 17 in 2020, according to research by CBRE Cambodia. The four developments comprised “more than 1,000” units, while the 17 in 2020 consisted of 10,866, the real estate firm reported. CBRE Cambodia categorises condos as “high-range”, “

  • Fourth dose Covid booster drive jabs 43K in two days

    In the first two days of the fourth-dose Covid-19 vaccination campaign, more than 43,000 people volunteered to get the jabs, while over 4.6 million people have received a third shot. Health ministry spokeswoman Or Vandine said that fourth-dose vaccinations, which began on January 14 exclusively with the Pfizer

  • PM sets tourism reopening as centrepiece of ATF 2022

    Prime Minister Hun Sen urged ASEAN to reopen tourism and trade now that many of the bloc’s member countries have vaccinated their populations. Speaking at the 40th ASEAN Tourism Forum 2022 (ATF 2022) in Preah Sihanouk province on January 18, the premier also said ASEAN has a