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Cambodia's Inflation Soars to Record Highs

Annual Consumer Price Inflation Hits 21.2%

Alarming Trends and Urgent Concerns for Cambodians

In a sobering report from the World Bank, Cambodia's annual inflation rate in 2023 has reached a staggering 21.275%, signaling a concerning trend that has serious implications for the country's economy and the well-being of its citizens.

According to data from the International Monetary Fund, the Consumer Price Index (CPI) for All Urban Consumers surged by 30% from June 2023 to June 2024. This represents a significant acceleration from the previous year, in which the CPI increased by 34%.

Over the year ended June 2023, consumer prices jumped by 30%, following a 40% increase the year before. These alarming numbers indicate a relentless upward trend in inflation, placing a heavy burden on Cambodian households.

Global economic conditions and domestic factors have contributed to the surge in inflation. The war in Ukraine, supply chain disruptions, and the rising cost of essential commodities have put pressure on prices worldwide. In Cambodia, the impact of these external factors has been compounded by domestic monetary policy, fiscal imbalances, and infrastructure challenges.