Papua New Guineans are to brace for higher prices of goods next year as the Government has projected Inflation to increase to around 7 per cent in 2017.
This is a 0.4 per cent increase from 2016 estimates of 6.6 per cent.
This will see domestic goods and services, medical services and housing prices to remain high.
According to the 2017 National Budget, the projected inflation rise for 2017 is reflective the back of several factors.
They include: the kina depreciation and slight pick-up in domestic economic activity relating to the National Elections, minor improvements in commodity prices, and construction of APEC facilities which are expected to boost income and spending.
The Government, however, projects that this will subside to around 6 per cent in 2018 and to around 5 per cent by 2021.
The Government says it is mindful of possible inflationary pressures stemming from high costs of doing business in PNG and is pursuing reforms to address it.
It is further stated that domestic inflationary pressures will continue to be monitored to ensure price stability and economic growth is maintained in the domestic market.