Kingdom inflation rises on oil prices

A woman purchases pork at an open-air market in Meanchey district, on the outskirts of Phnom Penh. (Will Baxter/Phnom Penh Post)

Monday, 27 February 2012
May Kunmakara
The Phnom Penh Post

Inflation in Cambodia rose 5.8 per cent year-on-year in January, according to figures from the National Institute of Statistics.

Rising fuel costs had spurred the inflation, which was felt largely in the price of food, officials said.

Data showed food and non-alcoholic beverage prices in January increased by 7.7 per cent compared to a year earlier.

The price of some items, such as beef and port wine, increased by as much as 17.5 and 20.3 per cent respectively, and the cost of vegetables rose nearly 10 per cent.

Poor To Receive Emergency Aid Package

By Chun Sakada, VOA Khmer
Original report from Phnom Penh
08 October 2008

The Asian Development Bank assistance would provide free rice to certain families living in poverty, as well as seeds and fertilizer to farmers.

The Asia Development Bank said Wednesday it would provide $35 million in emergency food aid to counter rising food and fuel prices gripping the country.

The aid would go to families living in seven provinces around the Tonle Sap lake and in the slums of Phnom Penh, the ADB said in a statement.

Half the aid package would be a grant and the other half would be a loan, with the government putting $5 million into the projects, the ADB said.

"There will be funding for food distribution and food for work, and capacity-building for emergency response to the food crisis," Arjun Goswami, ADB's Cambodia director, told reporters Wednesday.

Poor families will be offered free rice and other food subsidies, while schoolchildren will receive food as well. The aid will also be used to foster employment through "food-for-work programs" as well as donations of seed and fertilizer.

"The project will prepare the system to respond to a food crisis," said Vong Sandap, secretary-general of the Ministry of Economy and Finance and director of Cambodia's emergency food assistance project.

A typical Cambodian household spends 60 percent of its income on food, the ADB said, adding that many impoverished families "are selling their household assets and taking out high interest loans in order to purchase food, fueling a downward spiral of poverty."

The inflation in Cambodia exceeds by far 22.3%, according to the CDRI

25-09-2008
By A.L.G.
Cambodge Soir Hebdo in English
Click here to read the article in French

According to an independent survey, the importance of food products and fuel in the household consumption has been underestimated.

The price of rice has doubled over one year. In one year, the price of rice has doubled and the one of fuel has increased with 50%, indicates a survey of the Cambodia Development Resource Institute (CDRI), published on Thursday 25 September. According to the CDRI, the inflation exceeds the official number of 22.3% which was announced for the period between July 2007 and July 2008.

This number, based on a basket composed of 227 consumption goods, doesn’t give enough importance to food products, which represent 70% of the expenses for 40% of the population. In order to cope with this price increase, the poorer have bought lower quality rice, with a price increase from 1000 riel to 2000 riel per kilogram, while the traditional rice increased from 2000 riel to 4000 riel per kilogram.

Other food products with the highest increase between May 2007 and May 2008 are pork (between 50 and 70%), poultry (+54%) and beef (+16%).

The price increase of fuel and labour has resulted in higher production costs. Gasoline increased with 50%, diesel with 80%, fertilizers between 80 and 200% and one day of labour between 40 and 50%, particularly on the field of agriculture.

Amongst the sectors most hit by inflation: the food products and tobacco (36.8% on average), transport and communication services (27.1%), and medical care (16.2%).

The areas suffering from the highest inflation are the regions of the Tonlé Sap, in the provinces of Siem Reap, Kampong Thom and Kampong Chhnang. 37% of the households might face scarcity.

Over short term, the CDRI recommends that the country increases its food reserves in order to limit the impact of food price fluctuations. The Institute mentions that rice imports which aren’t registered through customs are an obstacle for the evaluation of cereal stocks.

Over mid-term, the independent Institute believes that it’s essential to invest in agriculture in order to ensure food self-sufficiency in Cambodia.