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