Annual inflation rate keeps 5.8% dropping in September

The annual rate of inflation in Myanmar, based on the Consumer Price Index, continued dropping to 5.8 per cent in September 2020 owing to demand slump triggered by the COVID effects, according to a report released by the Central Statistical Organization under the Ministry of Planning, Finance and Industry.
The US dollar against Myanmar kyat is relatively weak in September, with a fall of about K35 than the previous month and a sharp drop of K176 against a year-ago period. However, the gold price significantly rose in September on the back of global cues. The imported oil price dropped against August’s rate, causing the price index in the transportation group to slump.
Nevertheless, there was a remarkable increase in CPI for the food group, household goods and maintenance, other commodities, clothing, education services, recreation, culture and non-food. The price index of education, telecommunication and non-food groups is stable amid the COVID-19. The price of transportation and tobacco and beverages dropped, the report stated.
Starting from August 2019, the consumer price index rose, and the inflation rate 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 due to the coronavirus outbreak in March.
The inflation rate has registered at 8.35 per cent in May 2020, and so, the month of June with 7.91 per cent. The coronavirus impacts triggered the drop in the consumer price index, and it gradually inclined to 7.14 per cent in July, and the rate extended its slide to 6.43 per cent in August. It continued slipping to 5.81 per cent in September 2020. The annual rate of core inflation, which strips out volatile food and energy prices, was 11.23 per cent in September 2020, the inflation data indicated.
In September, Ayeyawady Region recorded the highest inflation rate at 10.83 per cent, followed by Mandalay Region at 9.54 per cent, and Nay Pyi Taw at 7.48 per cent. The rate fluctuated with a maximum rate of 5.53 per cent in Nay Pyi Taw and a minimum rate of -2.8 per cent in Mon State.
Earlier, the inflation rate was calculated based on a 2006 survey. The base year has later changed to 2012. The Central Statistical Organization conducted a Household Income and Expenditure Survey in 82 townships in November 2012. Based on policies on finance, currency, trade, and foreign currency control, the concerned authorities have been making efforts to reduce the inflation rate in keeping with the second five-year National Development plan (2016-2017FY-2020-2021FY). — Htet Myat (Translated by Ei Myat Mon)

Share this post
Hot News
Hot News