Cambodia sees decade-high inflation hike

A view of a market in Phnom Penh, Cambodia (Photo: AFP/VNA)

Phnom Penh (VNA) - Inflation in Cambodia continuously increased in the first months of this year, from 1.22% in February to 1.61% in March and skyrocketing to 7.2% in May - the highest recorded in the country in the last decade, according to the National Bank of Cambodia (NBC).

Cambodian press have quoted NBC Governor Chea Chanto as saying that the impact of the rising prices of oil and food in the world causes inflation in the country to increase continuously.

Speaking at a conference on July 20 to review the bank’s operation in the first half of 2022 and its orientations in the remaining months of this year, Chanto said the prolonged Russia - Ukraine conflict and the sanctions against Russia have pushed food and oil prices up, causing inflation hike in Cambodia.

The NBC is considering implementing a monetary policy to control inflation and support economic recovery in the direction of stabilising the exchange rate, maintaining the purchasing power of the local currency and the income of vulnerable groups.

To promote economic growth, the monetary easing policy will continue to be implemented by ensuring that the required reserve ratio is kept at 7%, thus helping financial institutions and banks to have more cash.

Chanto said the NBC has tightened regulations in a prudent manner before the COVID-19 crisis, especially in increasing capital, increasing liquidity and contingency.

These factors allow NBC and the Cambodian banking system to relax regulations during the pandemic and in the economic recovery period, he added./.

VNA