5 Mar 2004

Papua New Guinea treasurer says skyrocketing prices have "greatly moderated"

4:35 pm on 5 March 2004

The Papua New Guinea Treasuer, Bart Philemon, says the horrendous price increases of recent years have greatly moderated.

Mr Philemon says inflation has fallen to its lowest level in seven years after running at 8.4% in the December quarter last year, down from 14.8% in the 2002 period.

He says inflation is expected to trend further downwards this year, raising hopes that price increases will moderate and that banks and finance companies will slash their interest rates.

Mr Philemon says the low inflation rate in the December quarter was mainly due to the government's tight fiscal amd monetary policy stance in the first half of last year.