Inflation Hits Cambodia

By Rory Bryne
Video Editor: Manilene Ek
29 April 2008

As in other developing countries from Egypt to Haiti, soaring inflation has recently emerged as a threat to Cambodia's hard won social stability. While wages have remained low, the price of rice and other staples have skyrocketed pushing millions deeper into poverty. While the Cambodian government says it is doing its best to curb the worst effects of inflation, opposition politicians say it is not doing enough. Rory Byrne reports for VOA from Phnom Penh and Yann Ker narrates in Khmer.
On the face of it, Cambodia's economy is doing well. Phnom Penh, the nation's capital, is undergoing a building boom, which is changing the face of the city. Expensive new cars fill the city's streets as a resurgent middle class has emerged to take advantage of new business opportunities. But while some are prospering, many of the country's poorest people are slipping deeper into poverty. The reason is inflation.
While the incomes of the poor have remained constant, the price of food and other staples have risen dramatically. Cambodia's annualized rate of food inflation hit 24 percent last month, the highest in almost a decade, and one of the highest in Southeast Asia. The price of staple goods has fluctuated week by week. Prices for pork, chicken, beef, and prahok - a pungent fish paste that is the main source of protein for millions of poor Cambodians - have all jumped. more...
Source: VOA

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Talking about inflation, it is hard to deal with. With a dollarize economy, i once heard that around 20% or so is not a big deal. What is the reason behind? Can anyone enlighten about this?
Well, Cambodia is mostly an importing country. But these days, indirect rice exporting thru farmer (selling their rice from the field, not yet processed) not trader brings undersupply of food and staple.
Not only in Cam, but as well in other developing countries, inflation is also a problem. The weak dollar, the high cost of production and many more make the Cam's price a kind of doubt.
The new method of calculating the CPI is also bringing the big figure...oh my goodness, i need more study on this. i don't know when i can become an economist like others?