Country’s inflation to reach 7pc this year, says executive

INFLATION in the country is forecast to be between 6 and 7 per cent this year, according to International Container Services Inc (ICTSI) South Pacific chief executive officer Robert Maxwell.
Responding to queries from The National, Maxwell said consulting and banking entities had suggested that the cost of living would continue to increase this year.
“Inflation is forecast to be in the range of 6 to 7 per cent for this year, which then translates into higher cost of living for PNG citizens,” Maxwell said.
Goroka Chamber of Commerce and Industry president Chris Anders warned last week that inflation was likely to continue into next year and businesses must adapt to the changes now.
“We are seeing inflation. The price of fuel has risen due to the war in the Ukraine. The world is suffering severe backlogs at major supply chain hubs, port congestion and this looks like it is (going) to continue into 2023,” he said.
“These are challenging times for business and they need to be able to adapt.
“China has a zero tolerance Coronavirus (Covid-19) policy, so has locked down Shanghai, one of the world’s busiest ports and several others.
“There is a worldwide shortage of containers
“Containers are taking much longer to clear from the wharves in many countries due to the Covid-19.
“The logistic issues have pushed freight rates up – (more than) double in some instances.
So everything that we import has a higher freight component.”
He said it was also difficult to export goods for the same reason.
“Because of inflation happening in many countries around the world, many Central Banks are increasing interest rates to try to bring inflation down,” he said.