Inflation rate in Myanmar reached 7.28 percent during 2018-2019 fiscal year

Inflation rates in Myanmar during the 2018-2019 fiscal year were two percent higher than anticipated.

The inflation rate in March reached 7.28 percent, according to U Maung Maung Win, Deputy Minister of the Ministry of Planning and Finance, when he spoke at the recent session of the country’s highest legislature, the Pyidaungsu Hluttaw.

Inflation rates reached 6.8 percent in the March of FY 2016-2017, and 4.03 percent during FY 2017-2018.

“Because of the higher rate of the [U.S.] dollar, the currencies of many countries dropped against the dollar’s value. This had an impact on the Myanmar Kyat, causing higher local demand and reducing the value of our currency,” he added.

The Myanmar Kyat dropped to a record low rate against the United States Dollar in October 2018, K1,560 to $1. By March 2019, that rate gradually eased to K1,514.

Part of the trouble was also the fact that Myanmar was caught up in the global economic slowdown during FY 2018-2019. This was caused by China’s stricter financial regulations in the banking industry, trade tensions between the United States and China, weak confidence of businesses in Europe, and the decreasing foreign demands in many countries.

According to an inflation survey by the Central Statistics Bureau, the national inflation rate was 7.51 percent in April 2019, down slightly from 7.28 percent in March. Among the states and regions of Myanmar, Magway Region, Mandalay Region, and Mon State all faced the highest rates of inflation when contrasted to the lowest inflation rates in the country.

Trade data shows that Myanmar foreign trade during the first six months of FY 2018-2019 reached $17.27 billion, or 55.5 percent of the projected trade for the entire fiscal year. However, the trade deficit also dropped to $1.31 billion when compared to the same period last year.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/fy-2018-2019-inflation-rates-2-percent-higher-expected )

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