PNG Central Bank warns of High Inflation

Acting Governor of the Bank of Papua New Guinea Benny Popoitai has warned that developing economies, like Papua New Guinea would be adversely affected with high prices due to lack of social safety net programs and limited financial resources to minimize the impact, as economies are still recovering from the impact of the COVID-19 pandemic.

Global inflation increased significantly in the first half of 2022, due to rising fuel and gas prices, and food grains reflecting the impact of the Russia-Ukraine war.

PNG Central Bank /File Photo 

In the Quarterly Economic Bulletin December Quarter 2021, Mr. Popoitai stated that the higher prices are expected to remain elevated as Russia continues to show no signs of ending the war in the near future.

In light of this, the Government has introduced temporary relief measures, including raising the income tax threshold and providing tax exemptions on essential refined fuel products to relieve consumers of higher fuel prices.

NBC News / PNG Today

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