According to the figure of the consumer price index (CPI) released by the National Institute of Statistics (NIS), the inflation of the cost of living conditions in Phnom Penh  increased 1.8 percent in June  in comparison with May, when the prices rose 1 percent. The increase in inflation is because of the increasing prices of commodities and fuel.

The figure of the National Institute of Statistics revealed that the petrol cost went up almost 8 percent on the month. It was due to the 3 percent increase in transport prices. In spite of the climb, petrol still cost one-third less than it did a year ago when it hit 5,700 riels a liter. In addition, there are other category item that were driving the monthly cost of living figure higher was food, which was 2.3 percent higher overall.

The monthly increase means that the cost of living is still 4.9 percent lower than in June 2008, a slight narrowing of the 5.7 percent lower figure recorded in May.

Kang Chandararot, the president of the Cambodia Institute of Development Study, was quoted by the Phnom Penh Post as saying that the rise in the cost of foodstuffs would be seen by some as good news. He added that “this is a good sign for the economy, especially for farmers who still have rice and vegetables in stock available to sell,” adding that “It indicates that their hardships are gradually easing.”

The CPI is made up of a weighted basket of 259 household items cost in markets in the capital. The items include food, drinks, fuel, electricity, clothing, rent and telecoms.

This entry was posted on Monday, July 13th, 2009 at 8:30 am and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.