Inflation Slows Down As Oil Prices Plummet

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Inflation slowed notably last year amid plummeting oil prices, according to an annual report released yesterday by the National Bank.

The rate of inflation was 1.2 percent in 2015, down from 3.9 percent the year prior, as average gas prices fell by 23 percent over the course of last year, going from 5,090 riel at the end of 2014 to 3.900 riel at the end of 2015.

“The inflation in 2015 was low compared to 2014 due to the drop in gasoline prices, low inflation in countries exporting goods into Cambodia and the effective management of money supply,” the reports states.

According to Bank Governor Chea Chanto, quoted in the report, gas prices are expected to remain stable in the coming year: “In the situation in which the oil supply is forecasted to be stable, while the demand continues to be weak, the gas price is expected to be low.”

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