Inflation to dip to 3.2% in H2 2022, Cambodian National Bank forecasts

04 Aug '22

1 min read

Pic: 123rf.com/auuhoo

Cambodia’s National Bank in its first half report has projected the inflation rate to decline to 3.2 per cent in the second half (H2) this year after rising to 6.5 per cent in the first half due to rising fuel prices, disruptions in the global supply chain and a recovery in domestic demand. Average inflation rate reached 6.5 per cent in H1 2022, higher compared to H1 2021, which saw inflation average at 3.4 per cent.

"Fuel prices for commodities and services continued to rise 18.2 per cent in the first half, in line with global crude oil prices, with global oil supplies affected by geopolitical tensions coupled with a recovery in demand," the bank report said.

The 3.2 per cent forecast was made by observing a slowdown in the growth of oil-related commodity prices to 9.3 per cent, as global crude oil prices are projected to decline from July to the end of 2022, according to a Cambodian media report.

Food prices are expected to drop to 2.5 per cent, which is supported by an improvement in the supply chain as China eases restrictions.

ALCHEMPro News Desk (DS)

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