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Cambodia: Inflation in Kingdom expected to drop to 3.2 pct
In the second half of 2022, inflation rate is forecasted to decline to 3.2 percent after rising to 6.5 percent in the first half of this year.
The first half report and second half work direction of this year released by the National Bank stated that during the first half of this year, average inflation rate in Cambodia reached 6.5 percent, higher compared to last year’s H1, which saw inflation average at 3.4 percent.
Inflation tended to rise in the first half due to rising fuel prices, disruptions in the global supply chain and a recovery in domestic demand,” the report said. “Fuel prices for commodities and services continued to rise 18.2 percent in the first half, in line with global crude oil prices, with global oil supplies affected by geopolitical tensions coupled with a recovery in demand.”
Inflation was forecasted to drop to an average of 3.2 percent. The forecast was made by observing a slowdown in the growth of oil-related commodity prices to 9.3 percent, as global crude oil prices are projected to decline from July to the end of 2022.
Food prices are expected to drop to 2.5 percent, which is supported by an improvement in the supply chain as China eases restrictions.
Dr Hong Vannak, an economist at the Royal Academy of Cambodia, said that falling oil and energy prices had pushed down commodity prices. Falling inflation and oil prices will help restore the livelihoods of people.
Source: https://www.khmertimeskh.com/501124651/inflation-in-kingdom-expected-to-drop-to-3-2-pct/