Inflation is a worry
According to the World Bank, average annual inflation went up to 5.8 percent in 2013–14 from 2.8 percent in 2012–13.4 Rising aggregate demand amid infrastructure bottlenecks has been a key reason behind increasing inflation. High liquidity growth has not helped either, with both broad money and credit growing in double digits. Meanwhile, food prices have gone up due to floods, while hikes in public sector salaries have unleashed wage-push inflationary factors. The scenario is not likely to improve much in the near term. Adding to pressure on consumer prices will be a rise in global energy prices and a weak Burmese kyat. And with electricity tariffs rising sharply from April 1, inflation is likely to go up to 6.5–7.0 percent in 2014–15.