Annual inflation rate dips to 7.14 per cent in July

15 Sep

THE annual rate of inflation in Myanmar, based on the Consumer Price Index, stood at 7.14 per cent in July 2020, according to a report released by the Central Statistical Organization, under the Ministry of Planning, Finance and Industry. 

The US dollar against Kyat weakened in July, with a fall of K24 than the previous month. However, the gold price significantly rose in July on the back of global cues. Similarly, the imported oil price went up against June’s rate, causing truck fares and food price to slightly increase. 

Nevertheless, there was a remarkable increase in CPI for the food group, household goods and maintenance, other commodities, clothing, health, education services, tobacco and beverages, recreation, culture and non-food. The price of telecommunications dropped. 

Starting from July 2019, the consumer price index rose due to the hike in the electricity bill. The figure has remained above 8 per cent since June 2019. 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 of June with 7.91 per cent. It gradually inclined to 7.14 per cent in July, with a small decrease of 0.77 per cent against June’s rate. The annual rate of core inflation, which strips out volatile food and energy prices, was 12.68 per cent in July 2020. 

In July, Ayeyawady Re gion recorded the highest inflation rate at 12.24 per cent, followed by Mandalay Region at 11.33 per cent, and Nay Pyi Taw at 8.46 per cent. The rate fluctuated with a maximum rate of 7.08 per cent in Ayeyawady Region and a minimum rate of -4.46 per cent in Mon State. 

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 based on policies on finance, currency, trade, and foreign currency control, in keeping with the second fiveyear National Development plan (2016-2017 FY-2020-2021 FY). 

Htet Myat (Translated by Ei Myat Mon)