Inflationary pressure to increase says BPNG

Bank of Papua New Guinea have forecasted a five percent increase on consumer price index [CPI] for 2024.

Bank of PNG Governor Elizabeth Genia admits inflation will continue, on the back of a weaker PNG Kina against United States Dollar and in the “next 6 months we [BPNG] will have to make some tough policy decisions and doing so we will feel some pain for the long term. “

The ongoing, freefall of PNG Kina against United States Dollar, will see consumers continue to pay more for basic food items on store shelves.

“[In] 2024, bank expects inflationary pressure to increase due to depreciation of the Kina against US dollar [and] CPI is expected to increase to 5 percent this year,” Governor Genia made this comments this morning in Port Moresby, when presenting March 2024 BPNG Monetary Statement.

The head of the country’s central bank gave assurance that monetary policy interventions will be made to cushion increase prices of goods and services. 

“BPNG will closely monitor to keep inflation under control,” Ms Genia said.