Logo of Phnom Penh Post newspaper Phnom Penh Post - Projected inflation drops to 3.6 per cent

Projected inflation drops to 3.6 per cent

Projected inflation drops to 3.6 per cent

Cambodia's projected inflation rate was lowered on Tuesday from 5.5 per cent to 3.6 per cent as a result of improvements in a number of sectors, including fishery reform and land titling, the government said.

Economic Minister Keat Chhon said the inflation rate improved during the first half of the year, causing the government to revise their average inflation rate to 3.6 per cent.

Meanwhile, the exchange rate for the riel is stable at around 4,050 riel to one US dollar.

“The improvement in inflation results from an increase of national reserves in the first half to over US$3 billion, which can guarantee the import of goods and services for about five months,” he said, and added that improvements in the Kingdom’s fisheries policy and land titling also contributed to the decline of inflation.

Khin Song, depty director general of the National Institute of Statistics (NIS) agreed that based on the monthly data of the consumer price index, the slowdown in inflation was caused by lower inflation rates in countries that Cambodia has strong economic ties with.

“It is right that due to the monthly basis rate and the data at the end of the first half, inflation is very low, around 5 per cent,” he said.

According to Khin Song, the inflation rate from now on until the end of the year will be close to Keat Chhon’s projection.

According to Hiroshi Suzuki, CEO and chief economist at the Business Research Institute for Cambodia, all economists welcome this kind of stable inflation rate.

“It is the fundamental good condition and prerequisite for the good growth,” he said.

Suzuki added that due to the economic situation in the US and Europe and the slowdown in China: “I have had a little concern on the growth rate in Cambodia in the second half. Fortunately, I have not been able to feel any drastic slowdown in Cambodia so far.”

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

MOST VIEWED

  • Temi tourism project approved by the CDC

    The $500.4 million Tourism, Ecological, Marine and International (Temi) tourism project has been approved by the Council for the Development of Cambodia (CDC), according to a notice on its Facebook page on Monday. The project is part of Chinese-owned Union City Development Group Co Ltd’s (

  • Rainsy will return at ‘favourable time’

    Opposition figure Sam Rainsy on Saturday suggested he would not return to Cambodia as he had previously promised, saying that like liberators King Father Norodom Sihanouk and Charles de Gaulle, he would only do so at a “favourable time”. “I will go back to Cambodia

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s

  • NagaWorld casino sees net profit of more than $390M last year

    Phnom Penh’s NagaWorld casino posted a 53 per cent net profit increase last year at $390.6 million, a sum which is almost equal to the combined net profit of all Cambodian commercial banks in 2017. NagaWorld’s parent company, NagaCorp Ltd, is listed on the Hong Kong