Cambodia raises inflation forecast to 5.5 pct in 2011

PHNOM PENH, July 18 (Xinhua) — Cambodia raised inflation rate forecast to 5.5 percent this year, up from its earlier prediction of maximum 5 percent, said the Minister of Finance Keat Chhon (pictured) on Monday.

“As the globe is challenging with high unemployment rates and high inflation rates, Cambodia, a small country with open economy, is obviously unable to escape from these impacts,” he said during a meeting with the members of parliament on budget draft for 2012′ s expenditure.

“We hope that the rate will decline to 5 percent in 2012,” he said.

The soaring price of petroleum is the main cause fueling the high rise of inflation rate in Cambodia, since the start of the year, the price of gasoline increased by 10.6 percent to 1.38 U.S. dollars a liter, up from 1.25 U.S. dollars in January.

The government’s revised inflation rate is still lower than that forecast by the International Monetary Fund at 6.5 percent, but it is higher than the World Bank at 5 percent and the same as that of the Asian Development Bank.

Meanwhile, Keat Chhon said that the country’s revised GDP (Gross Domestic Products) for 2011 is 6.1 percent and for 2012 is 6. 5 percent.