Supply issues affect prices: Minister

TREASURER Ian Ling-Stuckey has blamed the increase in the cost of goods and services to the disruptions in the supply chain worldwide.
He said the Government was working hard to minimise the impacts at home “but supply chain uncertainty will only get worse this year”.
He was responding to Ialibu Pangia MP Peter O’Niell who told Parliament last week that the rise in costs was worrying, saying it was caused by the devaluation of the PNG Kina and the printing of money.
Ling-Stuckey said: “We have seen inflation rising around the world.
“The US had inflation increase to seven per cent last December, and emerging economies saw prices rise by 5.8 per cent on average last year.
“While we are still awaiting the final numbers, Treasury analysis for the budget suggests that in PNG, we saw average price rises of around five per cent in 2021.
“Fossil fuel prices have jumped internationally, and disruptions to shipping worldwide raised prices, which has caused some of the price increases we have seen at home.
“In addition, individual markets (like rice) have seen periodic spikes, caused either by export restrictions or difficulties moving things to market that have driven up prices.
“Fortunately our currency has slightly appreciated last year, which is helping moderate import prices a little. I’m pleased also that in PNG, we are still projecting price rises of only 5.6 per cent, below the 5.9 per cent average the IMF expects across emerging markets this year.
“So while we must work to minimise the impacts here at home, this is unfortunately a world wide problem, and supply chain uncertainty may only worsen this year.”