Inflation in Cambodia last year reached 2.9 percent due to a moderate increase in the price of key commodities, particularly petroleum and agricultural goods, with the National Bank of Cambodia (NBC) saying the low inflation rate was a product of sound macroeconomic management.
According to NBC’s annual report, the price of the basket of goods increased by 2 percent, driven by a moderate rise in the cost of vegetables, fish and milled rice. A modest rise in the price of petroleum also contributed to the low inflation rate.
Chea Serey, NBC’s director general, said last week that a 2.9 percent inflation was “manageable” and reflected the sound macroeconomic policies of the country.
“Cambodia’s economy continues to grow steadily, while inflation, at 2.9 percent, is low,” she said. “The exchange rate with the dollar has been maintained at 4,050 riels per US dollar, creating a favorable environment for economic development.”
Chea Chanto, governor of the central banking authority, said the NBC has been very careful in implementing its monetary policy in order to create a sound macroeconomic performance and to keep inflation and the exchange rate with the dollar stable.
“We have implemented our monetary policy very carefully, flexibly and consistently complying with the fiscal policy that is contributing to our macroeconomic stability. Our exchange rate is stable against the greenback following our market intervention.
“The 2.9 percent inflation rate for 2017 proves that we have been successful at choosing and implementing our policies.
“The price stability and the exchange rate stability have been protecting the people’s purchasing power, especially for lower and middle income segment of the population, and building public confidence on our national currency,” he added.
This article was originally published in the Khmer Times.