Logo of Phnom Penh Post newspaper Phnom Penh Post - Inflation slows to 0.7 percent in August

Inflation slows to 0.7 percent in August

Inflation slows to 0.7 percent in August

INFLATION in Cambodia continued to slow in August as the consumer price index (CPI) rose just 0.7 percent on the previous month, according to official figures obtained Tuesday.

The CPI data for August compares with a 1.5 percent rise in CPI from June to July and a 1.8 percent increase from May to June, suggesting that inflationary pressure in the Cambodian economy is waning.

August saw a 2.9 percent fall in prices year on year compared with the same month in 2008, when inflation was running at more than 20 percent, marking the sixth consecutive month of annualised deflation.

“Cambodia will experience a year of deflation in 2009, in stark contrast to the record pace of inflation of 25 percent that was recorded in 2008,” the London-based Economist Intelligence Unit (EIU) said in its September outlook for Cambodia.

Prices for petrol fell 25.4 percent in August year-on-year, the data showed, while natural gas was down 37.5 percent and telephone and fax equipment fell 25.4 percent, among the largest decreases among the products included in the figures.

Price rises for fish and seafood were the largest contributing factor to the month-on-month price rise, which climbed 2.7 percent.
The EIU has forecast 2.1 percent year-on-year deflation for Cambodia in 2009, with inflation expected to resume in 2010.

“Inflation will return in 2010 in response to a renewed build-up of demand-side pressures as economic growth begins to recover and global commodity prices edge higher,” it said in September's report.

MOST VIEWED

  • Angkor Wat named as the top landmark for the second year

    Travel website TripAdvisor has named Cambodia’s ancient wonder Angkor Wat as the top landmark in the world for the second year running in their Travelers’ Choice Award 2018, an achievement Cambodian tourism operators expect will attract more tourists to the Kingdom. The website uses traveller

  • Hun Sen detractors ‘will die’

    Prime Minister Hun Sen on Wednesday said those who curse or insult him would eventually die without a plot of land to bury their bodies after being killed by lightning, suffering the same fate as those who recently died in Thmar Baing district in Koh

  • Monks given ‘Samdech’ title for contributions

    Three senior monks on Thursday were given the highest-ranking title “samdech”, with Prime Minister Hun Sen saying that the promotions were due to their contributions to Buddhism. The three distinguished monks were promoted on Thursday morning at Botum Vatey pagoda in Phnom Penh, at a

  • Facing possible sanctions, PM criticises Washington’s rights record

    While United States congressmen are discussing the Cambodia Democracy Act and an amendment that could impose more sanctions against Cambodia’s government, Prime Minister Hun Sen on Tuesday counterattacked by questioning the respect of human rights and democracy under the US-backed Lon Nol regime, and