September 26, 2022

Cambodia: Market & Seasonal Monitoring Update – August 2022

In August 2022, the cost of a basic food basket (BFB) reached a record high in 2022, driven by a significant price hike for morning glory (+25.4% MoM). All other food commodities in the basket showed only slight fluctuations (±<5.0% MoM). The cost of the BFB stands at 111,167 KHR/person (+4.3% MoM, +3.2% YoY), equivalent to USD 27.2. On average, the BFB costs slightly more in urban areas (USD 27.6; +3.5%) than in rural areas (USD 26.4; +5.0%).

Despite some easing, some food commodities still show substantial long-term price increases such as vegetable oil (+23.0% YoY), which is mostly imported, duck eggs (+19.2% YoY) and morning glory (+40.8% YoY).

Market functionality improved notably throughout August with the Market Functionality Index (MFI) rising to its highest value since the beginning of this year. This improvement was driven by a strong increase across all market dimensions, most notably market prices and resilience of supply chains. Along similar lines, the number of customers visiting markets improved throughout the reporting month.

Income shocks due to COVID-19 coupled with continuously high prices for common food commodities, fuel and fertilizer are increasing the economic burden for poor and vulnerable households. Price hikes have already increased the cost of living – but may also negatively affect domestic food production in the mid-term as agricultural inputs become unaffordable.

Source: World Food Programme

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