Inflation peaks at 8.8% in December 2019

Inflation peaks at 8.8% in December 2019

A woman arranges vegetables for sale at a market in Yangon. Government statistics show that inflation peaked last December. Nyan Zay Htet/The Myanmar Times

Inflation  in 2019 peaked at 8.81 percent in December, the highest level in 12 months, according to the latest available data released by the Central Statistical Organisation (CSO). In January 2019, inflation was 6.94pc.

The higher inflation levels are due to steeper electricity tariffs implemented by the government since July last year.

Other reasons include the rising price of food, including rice, oil, meat, vegetables and other basic commodities, which was mainly driven by volatile exchange rates, according to the CSO. That also affected the price of non-food items, mainly fuel, which is imported.

High inflation rates could adversely affect lower-income households and undermine business competitiveness, the World Bank noted in a recent report. That could hurt savers, workers with fixed wages, and lower-income households, which spend a large share of their income on food.

Myanmar’s external competitiveness could also weaken if its inflation rate were to exceed those of its major trading partners over a substantial period, according to the World Bank.

Source: Myanmar Times

165total visits,4visits today