ICCC warns of high inflation

National, Normal

The National – Tuesday, December 21, 2010

DIRECTOR for the Independent Consumer and Competition Commission (ICCC) Dr Billy Manoka has said that with the PNG LNG project underway, there is the risk of “Dutch Disease”.
Manoka said this during the Hela development seminar held at the Hideaway Hotel last Friday.
He said the first effect of the disease would be the appreciation of the kina due to the large inflow of foreign currency.
He said this would make imports cheaper but exports more expensive.
He said the second consequence known as the “resource movement effect” was where the boom in the resources sector would attract skilled workers because of better wages and sectors.
Manufacturing and agricultural sectors would also lose labour.
The revenue flow would add to inflation.
Manoka said ICCC had a role in moderating inflation   through the promotion of competition, industry productivity reviews and price regulation of certain goods and services.