Logo of Phnom Penh Post newspaper Phnom Penh Post - Inflation slows to only 2 per cent

Inflation slows to only 2 per cent

Inflation slows to only 2 per cent

Cambodia's inflation rose by 2.2 per cent in August compared to the same month last year, according to the monthly data from the National Institute of Statistics.

The increase was due to the rise in food and the fluctuation of gasoline prices.

Government officials and economists said the slowdown of Cambodia’s inflation is due to the sound and stabilised macro-economy. They said the country’s inflation is very low compared to other countries in the region.

But, they said the variations of the international commodities and the fluctuation of gasoline prices could be a concern.

“The 2.2 per cent increase in inflation for all the indexed groups in August was due to the sub-groups such as food and non-alcoholic beverages, clothing and footwear, housing, water, electricity, gas and other fuels; furnishings, household maintenance, transport, restaurant and miscellaneous goods and services,” said the report.

The data showed food and non-alcoholic prices rose by 1.9 per cent, beef was up by 13.5 per cent, vegetables rose by 14.2 per cent, price for clothing and footwear went up by 3.5 per cent, and the price for gasoline went up by 4.2 per cent.

Khin Song, Deputy Director General of the National Institute of Statistics, said the country’s inflation is low compared to some other countries in the region. He said the main issue is that some countries from which Cambodia imports goods also have low inflation rates.

“We’ve got a low inflation rate due to our stable food prices,” Khin Song said, adding that although the fuel price is up and down at some points, it didn’t affect inflation too much. Moreover, we see that the exchange rate against US dollar is very stable – this is also the main thing contributing to the decline of inflation,” he said.

Economic minister Keat Chhon said the uncertainty in the EU, US and Chinese economies and the threat of floods are factors that could push up the inflationary rate in the upcoming months.

However, Hiroshi Suzuki, CEO and Chief Economist of the Business Research Institute of Cambodia (BRIC), said: “So far, it has been a good performance. However, I have a little concern about the movement on the international market, especially the price of oil and agriculture products.”

To contact reporter on this story: May Kunmakara at [email protected]

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted

  • Cambodia seeks probe into 'false reports' on Hun Sen's alleged Cypriot passport

    Minister of Justice Koeut Rith on September 6 wrote a letter to his Cypriot counterpart Stephie Dracos requesting cooperation in investigating and providing the truth in relation to the "exaggerative and false allegations" that Prime Minister Hun Sen holds a Cypriot passport. In his letter, the

  • 'Pandora Papers' expose leaders' offshore millions

    More than a dozen heads of state and government, from Jordan to Azerbaijan, Kenya and the Czech Republic, have used offshore tax havens to hide assets worth hundreds of millions of dollars, according to a far-reaching new investigation by the International Consortium of Investigative Journalists (