Inflation is simply defined as the rate of increase in prices over a given period of time.
Global inflationary pressure on the domestic economy was brought about by the COVID-19 pandemic and the Russian-Ukraine conflict that erupted in the beginning of 2022. These factors prompted the decline in global supply, causing huge supply gaps that consequently caused global demand to increase, PNG is no exception.
According to ICCC price observations in the past 5 months, the prices of many basic goods and services have continued to increase mainly due to the hovering effect of the global inflationary pressure on our economy.
However,ICCC observations show the following results;
- Food and Agriculture Organization statistics show that international food prices in 2023 have decreased to the 2021 level.
- Shipping rates have decreased since mid-2022
Chief Executive Officer of Independent Consumer & Competition Commission Paulus Ain said, “while we should expect to see some decreases in the domestic prices in the next 6 to 12 months, we are not able to predict the extent of these anticipated decreases.”
Commissioner Ain added that apart from these challenges and predictions, one of our domestic challenge is our (kina) currency’s ability to compete strongly against other major trading currencies to mainly facilitate imports.
Although, ICCC does not control pricing of goods they will continue to monitor business houses ensuring they do not over charge consumers.
Commissioner Ain, highlighted that domestically, consumers are too dependent on imported goods, hence are faced with the challenge of over spending on goods.
He said it is advisable that consumers depend more on our locally manufactured products and garden produce while the government can look at the overall government policy to reduce import.
