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August 11, 2020

Annual inflation rate dips to 8.35 pc in May

The annual rate of inflation in Myanmar, based on the Consumer Price Index, stood at 8.35 per cent in May 2020, according to a report released by the Central Statistical Organization under the Ministry of Planning and Finance. The figure has remained above 8 per cent since June 2019. The inflation rate stood at 7.28 per cent in March 2019 and gradually inclined. It reached a peak of 8.61 per cent in September and dipped in November. It touched the highest level at 8.81 per cent in December 2019 because of the high season. Afterwards, despite the drop in fuel oil price and gain in local currency, power tariff hike led to higher inflation rate up to 9.2 per cent in February 2020. Then, it gradually declined. The inflation rate was registered at 8.35 per cent in May 2020, and so, the month May has witnessed a small decrease of 0.45 per cent against April’s rate. The core inflation, which strips out volatile food and energy prices, was 13 per cent in February. The Myanmar Kyat weakened against the US dollar in May. The imported oil price and gold price slightly rose in May compared with April’s rates, causing food price to slightly increase.
Nevertheless, there was a remarkable increase in CPI in the household goods and maintenance, other commodities, clothing, health, education services, recreation, culture, non-food and tobacco and beverages groups. The price of telecommunications dropped. In May, Ayeyawady Region recorded the highest inflation rate at 12.79 per cent, followed by Magway Region at 12.28 per cent, and Nay Pyi Taw at 10.39 per cent. The rate fluctuated with a maximum rate of 8.66 per cent in Ayeyawady Region and a minimum rate of 0.52 per cent in Sagaing Region. Earlier, the inflation rate was calculated based on a 2006 survey. The base year was later changed to 2012. The Central Statistical Organization conducted a Household Income and Expenditure Survey in 82 townships in November 2012. To reduce the inflation rate, the concerned authorities have been making efforts on the basis of policies on finance, currency, trade, and foreign currency control, in keeping with the second five-year National Development Plan (2016-2017FY-2020-2021FY).—Htet Myat (Translated by Ei Myat Mon)

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