Inflation rates driven by increases in food prices

The Kingdom’s consumer price index tracked a 1.4 percent increase in May over April, according to National Institute of Statistics’ latest figures.

Prices at the end of May were 6.5 percent higher than the same date the year previous, the figures show.

Experts said Cambodia’s situation was stable, pointing to some regional nations as seeing 20% rises.
Governments in Vietnam, India and China have attempted to reduce economic growth in order to curb inflation, said Business Research Institute for Cambodia Chief Executive Officer Suzuki Hiroshi.
The situation within Cambodia remains stable, he said.

“However, watching the situation closely is indispensable.”

Continued reductions in the global prices for oil would help reduce inflation, though he added concerns that food was becoming more expensive.

Major contributors to the inflation rates were a 2.9 percent increase in foods in May compared to April, an 8.2% increase for meats month-on-month, and 4.0 percent for fish and seafood in the period, according to the NIS figures.

Cambodia has fewer options available in dealing with increases in prices than other countries that manage their own currencies, according to Suzuki Hiroshi.

“Due to the dollarisation in Cambodia, there are not enough policy measure to cool down inflation,” he said.

However, with the United States’ second round of quantitative easing ending last month, international inflationary pressure may be weakened in the near future, he said.

Source: Phnom Penh Post

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