Inflation storm sweeps across Mekong region, pricey basic necessities hit consumers

PHNOM PENH: Millions of consumers across the Mekong region are suffering from the rising cost of living as galloping inflation bites into their daily incomes.

Prices of food, fuel, transportation, education, electricity and cooking gas have all spiked up following the West Asia conflict that erupted on February 28.

The European Chambers of Cambodia, in its latest newsletter, commented that the primary driver is the ongoing conflict in West Asia, which pushed up global energy prices and disrupted supply chains.

“Inflation is likely to remain elevated across the region in the near to medium term.

“For businesses in Cambodia, the data points to sustained pressure on input costs, operating expenses, and consumer purchasing power in the months ahead,” cautioned the Phnom Penh-based trade body.

Inflation is puncturing economic growth stories. Cambodia has revised down its growth to 4.2 per cent this year from an initial five per cent, primarily due to geopolitical uncertainty.

“Higher global energy prices are expected to affect key sectors dependent on fuel, including agriculture, transportation and tourism, while inflation could weaken consumer spending and economic activity,” Cambodian Minister of Economy and Finance Aun Pornmoniroth said last week, reported online portal Fresh News.

Countries surrounding the agriculturally rich Mekong River experienced a sharp rise in inflationary pressure in April.

Laos faces the brunt with a 10.2 per cent inflation rate, Vietnam at 5.46 per cent, Cambodia’s 5.79 and Thailand at 2.89 per cent.

Over 300 million people in the region, many of whom rely on farming and micro-businesses, are trapped in the vicious cycle of financial uncertainty.

For many families living on thin margins, the rising consumer price index is more than numbers. It is about daily survival.

In a small farming village along the Mekong River, rising fuel prices mean farmers have to pay more to transport their crops to markets, while soaring fertiliser costs are eating into already unstable incomes.

In emerging cities — Vientiane, Phnom Penh, to Yangon — the growing city population faces rising cost of living, from rent, education, healthcare, to commuting, which could exacerbate urban poverty.

Many find it hard to survive on barely US$200 (RM794) a month, which is the mandatory minimum wage in some economies.

According to regional statistics, all consumer items, from cooked food to fresh vegetables, to power and dining out, have surged.

The Laotian Times reported that Laos healthcare and medicine prices shot up 13.7 per cent, while education costs spiralled 12.3 per cent in April.

In rural economies that are largely dependent on farming and fishing, and are vulnerable to climate change and natural disasters ranging from typhoons to earthquakes, inflation adds another layer of distress to lives already burdened by financial strain.

© New Straits Times Press (M) Bhd

المصدر: New Straits Times