Friday, August 29, 2008

Inflation

I'm back from R&R to find that prices are increasing in almost every sector. Inflation of consumer prices is at 37%. The price of gas is soaring. No doubt rice will follow especially with the drought in several provinces. Now rat meat has quadrupled in price. Rat meat was the affordable protein.

With consumer price inflation at 37 percent according to the latest central bank estimate, demand has pushed a kilogram of rat meat up to around 5,000 riel (69 pence) from 1,200 riel last year.

Spicy field rat dishes with garlic thrown in have become particularly popular at a time when beef costs 20,000 riel a kg.

Officials said rats were fleeing to higher ground from flooded areas of the lower Mekong Delta, making it easier for villagers to catch them.

Even this readily available source of protein may be out of the price range for the 42% (6 million people) living on less than a dollar a day according to the World Bank's latest poverty line re evaluation.

Prehaps the government can focus on issues of poverty and inflation now that the chaos of the general election has passed and there is no longer a war pending over 4.5kms of land near Preah Vihear.

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