Inflation rate to reach 6.6 per cent this year

THE inflation rate  is expected to be 6.6 per cent this year, higher than the 2016 Budget estimate of 5.7 per cent, according to Treasurer Patrick Pruaitch.
He said this when tabling the 2016 supplementary budget in Parliament last Thursday.
“Inflation in 2016 is expected to be 6.6 per cent, higher than the 2016 Budget estimate of 5.7 per cent,” Pruaitch said.
“The increase accounts for the higher-than-expected 2015 inflation outcome of 6 per cent, the gradual depreciation of the Kina against our major trading currencies and the anticipation of a gradual recovery in commodity prices, especially the crude oil.”
He said the supplementary budget set the basis for the 2017 budget.
“The medium term fiscal path is to return to surplus in 2020.”
He said a number of corrective measures introduced in the original 2016 budget were being implemented.
These include the amalgamation of departments and agencies, freeze on recruitment and addressing personal emoluments costs to save costs.
The Government will also continue to enforce tax compliance and review a range of excise charges and fees, he said.