Cost of Living Set to Rise in Papua New Guinea
Port Moresby, Papua New Guinea - The Bank of Papua New Guinea (BPNG) has forecasted a five percent increase in the Consumer Price Index (CPI) for 2024, indicating a rise in the cost of living.
Governor Elizabeth Genia acknowledged ongoing inflationary pressures during the presentation of the March 2024 BPNG Monetary Statement. The depreciation of the Papua New Guinean Kina against the US Dollar is a key factor behind this trend, leading to higher import costs for essential goods.
"In the next six months, we [BPNG] will have to make some tough policy decisions," Governor Genia said. "While these decisions may cause some short-term pain, they are necessary for long-term economic stability."
The weaker Kina is expected to directly impact consumers, as the cost of basic food items on store shelves is projected to rise.
Governor Genia assured the public that the central bank is committed to mitigating these price increases. "BPNG will closely monitor the situation and implement appropriate monetary policy interventions to keep inflation under control," she stated.
Papua New Guineans should brace for potential adjustments in the coming months as the central bank navigates these economic challenges.
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