Logo of Phnom Penh Post newspaper Phnom Penh Post - Inflation reduced

Inflation reduced

Inflation reduced

T he inflation rate for last year was 31 percent overall, with prices actually

deflating by 30 percent in the second half of the year, new figures released by

the National Bank of Cambodia reveal.

The inflation figure for last year

is a considerable improvement on 1992 when it spiraled out of control to reach

176 per cent overall.

In its report on the final quarter of 1993, the NBC

said: "Fiscal and monetary policies in the second half of the year brought

considerable success in the fight against inflation."

Inflation had been

running at 85.41 percent in March prior to the elections but substantial falls

in the food price index brought overall inflation for the year down. Rice prices

lead the way, falling by 22.2 percent in November alone.

The NBC

concluded: "The overall picture is of genuine stability, especially after May

1993."

Despite wild gyrations last year, the riel ended up declining by

only seven per cent against the dollar as compared with 1992, with the overall

rate softening from 2,310 to 2,470 riels to the dollar.

The NBC sold riel

to bring its value down against the dollar in December after it climbed 17 per

cent to an exchange rate of around 2,240 in November.

On money supply,

the report reveals that the government was able to hold back growth to 34

percent last year after it mushroomed by a staggering 300 percent in 1992.

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

  • Hun Sen gets 4th Covid shot, urges compatriots to follow

    Prime Minister Hun Sen and his wife Bun Rany on January 14 received their fourth dose of Covid-19 vaccine and called on compatriots to follow suit as the Omicron coronavirus variant continues to spread in the community. This marks the launch of Cambodia's fourth-dose vaccination campaign,

  • 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

  • Singapore backs Cambodia's efforts on Myanmar

    Singaporean Prime Minister Lee Hsien Loong supports Cambodia in its efforts to seek a solution to the ongoing Myanmar crisis as the chair of ASEAN. Lee expressed his support during a meeting with Prime Minister Hun Sen via videoconference on January 14, with the talks focused

  • 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