Logo of Phnom Penh Post newspaper Phnom Penh Post - Oil prices drove down inflation in 2015

Oil prices drove down inflation in 2015

People stop at a petrol station to refill their motorcycle late last year in Phnom Penh.
People stop at a petrol station to refill their motorcycle late last year in Phnom Penh. Pha Lina

Oil prices drove down inflation in 2015

The annual inflation rate in Cambodia last year was well below government expectations, clocking in at 1.2 per cent, compared to the official estimates of 3 per cent, according to the central bank’s annual report.

The National Bank of Cambodia’s yearly report found that inflation dropped to 1.2 per cent last year, from 3.9 per cent in 2014, on the back of low oil prices, inflation pressures easing in countries the Kingdom imports from, and the effective management of the nation’s monetary policy.

The report further attributed this drop to a 4 per cent easing in food prices and 9 per cent decline in transportation costs.

Economist Teng Delux said global drops in raw materials, such as iron ore, also helped lower the inflation rate. He added that the falling rate had created a risk of deflation.

“Inflation can provide some push to economic growth, while deflation curbs growth, as is happening in Japan.”

The report also showed that low inflation rates in countries exporting goods to Cambodia, as well as a favourable exchange rate-based inflation due to the riel’s appreciation, helped lower the prices of Cambodia’s import-heavy trade balance.

MOST VIEWED

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • More than three tonnes of ivory reportedly bound for Cambodia seized in Mozambique

    A total of 3.5 tonnes of ivory reportedly bound for Cambodia was seized by authorities in Mozambique late last week, according to the NGO Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES' information was based on a report from the

  • Defence Ministry denies weapons in smuggling case came from Cambodia

    After a Thai national was arrested last week for allegedly smuggling guns from Cambodia to Thailand, Cambodia's Defence Ministry has claimed the weapons seized during the arrest are not used in Cambodia, despite the fact that both types of rifle seized are commonly found in

  • Shipwreck found off coast of Koh Kong

    Royal Cambodian Navy researchers are working to identify a decades-old shipwreck found earlier this month off the coast of Koh Kong province. Divers found the 70-metre-long wreck on April 4 about a mile from Koh Chhlam island, according to Navy officials. Deputy Navy Commander Tea Sokha,