In the year following September 2021—the budget year—the military coup, inflation in Myanmar reached 7.3%.Under the NLD government, Myanmar’s average inflation rate was 6.4% between 2017 and 2019 and fell to 5.2% by 2020 due to lower food and electricity prices, according to the World Bank’s 2022 Myanmar Economic Monitor.
In January 2021, preceding the tactical overthrow, it fell another 0.7 percent. However, food and fuel prices increased to 7.3% in September 2021 (the second fiscal year) following the military coup.
Expansion, which rejects groceries, rose pointedly from 0.6 percent in January to 9.8 percent in December because of a critical expansion in transportation costs.
The ongoing expansion circumstance in Myanmar is like that of 1988.
A foreign economist stated: In our nation, exactly this took place in 1988. This is due to the fact that the value of the currency decreases when the current military council prints more of its own banknotes to cover spending that exceeds income. The impact will be greater in the future even if the current banknotes are issued. Since in the experience of ’88, the emergency that began in ’86 was at its top in ’88. The banknotes must therefore be reclaimed. Therefore, we can anticipate this occurring within two or three years.
An economist declared: The main issue right now is that the economy as a whole is getting worse because of rising costs. The price of goods rises in tandem with costs. Transportation expenses and rising fuel costs account for the majority of costs. Accordingly, the costs of merchandise consumed by most of the average increment in view of these expenses. So, commodity prices have gone up. As a result, high inflation is a current issue. Again, our financial system is unique in that it is not as smooth as it used to be. We need to spend more time together to complete the task because banking is not easy. As a result, there are additional side effects as a result of these costs. This is a problem only in Burma.
The leader of the coup claimed that the economy of Burma had improved as a result of the military coup on February 1.
