According to Robert Maxwell, the chief executive officer of International Container Services Inc South Pacific, Papua New Guinea is forecast to reach 6-7% inflation this year. He said that several consulting and banking entities agreed, and the cost of living would continue to rise this year. This would mean higher costs of living for PNG citizens.
Chris Anders, president of the Goroka Chamber of Commerce and Industry, has also warned about inflation. He said that it was likely to continue into 2023 and that businesses needed to adapt and adjust 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,” Anders 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,” Anders said. He noted these issues also meant exports were also facing problems.
Anders added, “Because of inflation happening in many countries around the world, many Central Banks are increasing interest rates to try to bring inflation down.”
Image source: APICT
