Recession in America reduces inflationary pressure on Cambodia's price indexes
- From: Chim <ChimS1@xxxxxxx>
- Date: Fri, 31 Oct 2008 05:53:46 -0700 (PDT)
http://www.phnompenhpost.com/index.php/2008103122423/Business/Inflation-could-nearly-halve-on-falling-fuel-costs-officials.html
Inflation could nearly halve on falling fuel costs: officials
Written by Chun Sophal and Hor Hab
Friday, 31 October 2008
Finance ministry officials hope lower global oil prices will ease
financial pressure on consumers by reducing the inflation rate by 10
percentage points
FALLING fuel prices could nearly halve Cambodia's record-high
inflation rate by January, officials said Thursday.
"We hope the inflation rate will drop to 15 percent by year's end and
will reach nine percent next year if international crude oil prices
stay below US$70 per barrel," Hang Chuon Naron, secretary general of
the Ministry of Economy and Finance, told the Post Thursday.
International crude prices hit $69 per barrel on Thursday - a drop of
more than 50 percent from July's high of $147 per barrel.
The comments followed a meeting between government officials and
representatives of Cambodia's petroleum import companies, where it was
announced that petrol prices would drop to 4,000 riels ($1) per liter
by Monday.
World oil prices have plummeted on a slowing global economy and
declines in demand, and Cambodian pump prices are expected to come
down as a result.
Inflation in the Kingdom rose rapidly over the past year with rising
fuel costs, and opposition politicians say they are not optimistic
that commodity prices will fall as rapidly as the government predicts.
Sam Rainsy Party lawmaker Yim Sovann said the government's inflation
projections were unrealistic, as petrol prices in local markets have
dropped less than in other countries.
"The government should not expect inflation rates to drop if petrol
prices remain stable at over 4,000 riels per litre as they are today,
because this rate will not help local products compete with imported
goods," Yim Sovann said.
--------------------------------------------------------------------------------
The government has just confused matters with these predictions.
--------------------------------------------------------------------------------
"I don't believe the inflation rate will drop to 15 percent," he said.
"I think the government has just confused matters with these
predictions, and they continue to conspire with local petroleum
companies to keep prices high and out of line with the international
market."
Cambodia's inflation rate averaged 22 percent in July and August,
according to the Ministry of Planning.
Outside experts, however, put the inflation rate at about 30 percent.
Target in doubt
Independent economist Sok Sina said he expects inflation to fall from
current levels, but said that there was no guarantee it would decrease
to 15 percent.
"It takes a long time for inflation to adjust because the country does
not have full and fair competition," he said.
"But we would be happy to see the rate drop to nine percent next year
from 30 percent last year," he added.
He said that inflation is also a symptom of other factors aside from
petroleum prices.
"The price of commodities drops slowly, and they only drop when the
government forces prices down, as they are trying to do with petrol,"
Sok Sina said.
"It will only drop faster if there is fair competition and good
governance," he told the Post.
.
- Prev by Date: Hun Sen lied to Sam Rainsy so that the National Assembly could legitimately hold a swearing in ceremony
- Next by Date: Years of flooding could be over for a Phnom Penh high school
- Previous by thread: Hun Sen lied to Sam Rainsy so that the National Assembly could legitimately hold a swearing in ceremony
- Next by thread: Years of flooding could be over for a Phnom Penh high school
- Index(es):
Relevant Pages
|
Loading
