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Inflation in Myanmar

In every trip I make to Yangon, I couldn’t help noticing its transformation. One of the major transformations is the construction sector. All these swift transformation comes with a price which is the skyrocket real estate prices. The Asian

Development Bank (ADB) reported that the inflation was seen at 6.6 percent in 2014 and rising to 6.9 percent in 2015. One of the contributing factors comes from the rising property

prices. Any sane person should know that escalating properties prices might have the following consequences:

1) Pressures on domestic earning;

2) Potential foreign investors might be deterred and adopt a “wait and see attitude” ;

3) Social Inequality gap; and

4) A bubble in the making

Myanmar is not isolated from a weak global economies or a possibility of currencies war. All these external factors and any government curbing measures on inflation will have a damping effect on the local economy