A moderate level of inflation is good for the economy, whereas deflation has a negative impact on the country’s economy at a particular level, said U Maung Maung Win, deputy minister for Planning and Finance.
What is important is to exert efforts to effectuate the development in economy, boost the livelihood of people and scale up the individual income of the public, he added.
A high level of inflation not only affects the economy, but also adversely affects low-income people. The low-income people suffer from the high price of commodity because of the income and the expenditure mismatch. Similarly, exporters benefit from a high exchange rate whereas a high rate has a negative impact on the importers, he continued.
From his point of view, U Set Aung, vice governor of the Central Bank of Myanmar, said Myanmar’s inflation level exceeded 40 per cent last year, resulting from floods and erratic weather. This year, the inflation rate has plunged down from a running inflation level to a walking inflation level of around 6 per cent.
“The Central Bank of Myanmar and the ministries concerned are needed to control the inflation rate. We have received the opinions about inflation from International Monetary Fund (IMF) and we are adopting the proper monetary policy”, he added.
The Central Statistical Organization (CSO) evaluates and releases monthly and annual inflation rates. The organisation has conducted joint exercises with IMF eight times to examine the evaluation of the statistics. Production plays a major role in economy to take off, said its director-general Daw Wah Wah Aung.
“We are trying to respond to monetary policy, fiscal policy, trade policy and investment policy to adapt the current economy. In addition, the government is making efforts to stabilise and improve the macro economy. Concerted efforts are also being exerted to control GDP ratio and inflation rate, with the formulation of policy under short and long term plans. Public participation is an essential part of economy, said U Maung Maung Win.
The Central Bank of Myanmar is cooperating with the ministries concerned not to have manipulation in the market, according to U Set Aung.
Source: Global New Light of Myanmar
