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

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • PM asks India for vaccine help

    Prime Minister Hun Sen is seeking assistance from India for the provision of Covid-19 vaccines as the country has produced its own vaccine which is scheduled to be rolled out to more than 300 million Indians this year. The request was made during his meeting with

  • Capital set to beef up security

    Phnom Penh municipal governor Khuong Sreng held the first meeting of the year with heads of armed forces in the capital to review and repair the deficiencies related to gun control, drug crimes, social order disruptions due to alcohol consumption and traffic law enforcement. Municipal