Shadow Finance Minister Bire Kimisopa urged the National Government to put in measures to address the increasing inflation rate which is causing prices of basic foods.
The Goroka MP made this statement in Parliament after the supplementary budget was tabled by Treasury Minister Patrick Pruaitch yesterday.
“The medium term fiscal outcome is quite clear in terms of inflation, if you look at 2011 it started roughly about 4 percent and we are tracking on an upward projected for 2016 is 6.6 percent, I suspect by end of the year we could go up to 6.8 or 6.9 percent,” Kimisopa said.
“It’s quite obvious that household consumption of basic goods for right across the country have gone up, to bring this argument to little bit closer, the prices of 1KG packet of rice is selling at K6 for one, Lamp flaps K22/kg in Port Moresby.
“We have lost control on inflation it has been trending upwards and our people are feeling the pinch.
“It would appreciate if we introduce inflation targeting, in terms of our projecting inflation to bring some normalcy back on items like rice and tin fish.”
Kimisopa described debt and deficit as a dangerous drug and said consolidating all debt in one basket will help the government to plan.