Cambodia inflation down for sixth consecutive month

Source: Xinhua

PHNOM PENH, Sept. 15 (Xinhua) -- The price of consumer goods dropped in August by 2.9 percent compared to the same month last year, marking the sixth consecutive month that inflation decreased compared to figures from last year, local media reported on Tuesday, citing the August Consumer Price Index.

The reduction in prices follows record-high inflation that reached a peak of 25.7 percent in May 2008, the local English newspaper the Cambodia Daily reported.

The figures released Monday show that in June inflation was in negative territory at minus 5.7 percent compared to the same month last year, and in July it fell to minus 3.9 percent, according to the CPI, which is published by the Planning Ministry's National Institute of Statistics.

The Monday report shows major decreases in fuel prices, including a 37.5 percent decrease in cooking gas prices and a 25.4 percent drop in gasoline costs, comparing August 2008 to August 2009. Overall prices, however, increased from July to August by 0.7 percent.

"Prices this year are quite stable and the inflation just reflects peak prices last year," the Cambodia Daily quoted Chan Sophal, president of the Cambodia Economic Association, as saying.
With global food and oil prices stable compared to a year ago, the problem consumers face the most is falling incomes, he said, adding that fewer jobs and lower profits have restricted the ability of Cambodians to spend.

TaI Nay Im, director general of the National Bank of Cambodia, said without last year's high inflation to explain August's figures there might be cause for concern, but there is nothing to worry about in the falling prices.

"It's not a concern because last year there was very high inflation and this year this inflation is normal," she said.