Papua New Guinea Inflation goes up to 10.7%
28/08/08 INFLATION has shot up to 10.7%, indicating a general increase in the prices of goods and services over the past three months to June 30.
Figures supplied by the National Statistical Office (NSO) indicated an annual headline inflation (June quarter 2007 to June quarter 2008) increase of 3.2%. The March quarter recorded headline inflation at 7.5%.
The increase surpasses Bank of PNG’s earlier assumptions of an inflation at 9% for the remainder of this year, and would be a cause for concern in which BPNG is likely to further tighten monetary policy, increase its signalling kina facility rate (KFR) and other instruments at its disposal to counter price increases. The NSO said the CPI (consumer price index) showed 3.7% in the June quarter this year, compared to 3.1% in March.
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