Inflation on Goods Eases, But Just a Little
Prices for commodities, fuel and other goods are dropping, economists say, but not enough. (27 November 2008)
Inflation pressure has eased on Cambodia, but only a little, as theprices of international commodities and basic foods has slightly decreased,economists say. Government officials and analysts said the decrease, broughton by lower fuel prices and other reduced costs, was still not enough. “The price of commodities has a little bit reduced, notmuch. So we are trying to reduce it further,” said Hang Chuon Narong, generaldirector of the Ministry of Economy and Finance. The inflation rate was 17 percent in November, down from 30percent the month before, he said. The government would like to see an inflation rate of 9percent in early 2009, he said. The inflation rate can only be reduced if the price of fuel,which heavily influences commodities, continues its fall on internationalmarkets, said Kang Chandararoth, head of the Cambodia Institute of DevelopmentStudy. Crude oil on Saturday was down to $48 per barrel, comparedto $147 per barrel in July. In Cambodia,a liter of fuel cost around 3,500 riel, less than $1, compared to 5,700, around$1.40, in August. The price of high-quality jasmine rice was down to $40 per50 kilogram sack in most markets, while the lower-quality rice consumed by mostCambodians was around $21 per 50 kilograms. Vegetables in the markets followed the trend, by about 1,500riel, or $0.37, in November, said market retailer Phay Sokhen. “Now there is no more rain, so the price of vegetables hasreduced a little bit,” she said. “It depends on the climate, not the price ofgasoline.” Fish prices had decreased by about 2,000 riel per kilogram,fish mongers said Saturday, but mostly due to the season. Meanwhile, commodities imported from neighboring countries,especially Thailand,were down by around 1 percent in November, thanks to a recession of the Thaibaht. Pork remained the same, around 16,000 riel, or $4, perkilogram, and chicken held steady at 18,000 riel, or $4.50, per kilogram. “I bought expensive, so I have to sell expensive too,” saidHing Chantha, a chicken retailer at Central Market. Many Phnom Penhresidents, from housewives to students to factory and construction workers saidthey had seen little benefit so far from a lowered inflation rate. Prices haddropped, they said, but not enough to make a difference. Cambodian People’s Party lawmaker Cheam Yiep said the priceof products always increased when fuel prices were high, but not reduced whenthe fuel price fell. “Some business people are greedy,” he said. “Although someproducts have reduced their prices, they won’t follow it.”