Country Report Cambodia May 2011

Outlook for 2011-12: Inflation

Inflation will accelerate in 2011, with consumer prices rising by 6.1% on an annual average basis, up from 4% in 2010. Although demand-side pressures have increased in line with the recovery in domestic demand, the main contribution to inflation this year will come from higher international prices for oil and non-oil commodities, notably for food. The rate of inflation will slow in 2012, when consumer prices will rise by an annual average of 4.9%, in line with lower global commodity prices.

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