Cambodia offers cash to 360k families affected by inflation, floods

PHNOM PENH (CAMBODIA): Cambodia has begun to provide cash handouts to nearly 3,60,000 households with about 1.3 million people affected by inflationary pressures and recent floods, a senior official said.

"The government is expected to spend $31 million for inflationary pressures-hit families and 15 million dollars for recent floods-stricken families for three months (from December to February)," said Chan Narith, Undersecretary of State of the Economy and Finance Ministry, in a press conference on Saturday.

According to a directive signed by Cambodian Prime Minister Samdech Techo Hun Sen last week, those affected families had been identified by the Ministry of Planning to receive cash assistance based on areas, Xinhua news agency reported.

Those in the capital Phnom Penh will receive $25 per family, with each household member getting an additional seven dollars, and those in provincial towns will be given 22 dollars, with each household member provided an additional six dollars, while those in rural areas will receive 20 dollars, with each household member getting an additional five dollars.

Recent flood-hit households in Phnom Penh and 15 provinces will receive 20 dollars for each family, with each member getting an additional four dollars, according to the directive.

The World Bank said in its Cambodia Economic Update released on Wednesday that rising global energy, fertiliser and food prices prompted a surge in inflation in the country, saying that consumer price inflation accelerated to 7.8 per cent in June but eased to 4.9 per cent in August 2022.

"Rising inflation is particularly harmful to poor households," the bank's report said.