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Is Life Getting More Expensive in Cambodia?

Published 8 October 2026

5.8%inflation in April 2026, year-on-year (World Bank, citing NIS)
49.7%of household spending goes on food and drinks (2023, NIS CSES)
about −4%minimum wage buying power, 2024–2026 (Camdex Lab estimate, uses forecast)
1 in 3households carried a debt, 33.8% (2023, NIS CSES)
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Is life getting more expensive in Cambodia? After two years of slow price rises, a fuel shock in 2026 pushed inflation up quickly, while incomes grew slowly. By our estimate, the garment minimum wage now buys about 4% less than in 2024.

What happened

Inflation is the speed at which prices rise. For two years, prices in Cambodia rose only slowly. Average inflation was 0.8% in 2024 and 2.5% in 2025 (Asian Development Bank, April 2026).

Then conflict in the Middle East pushed up world oil prices. Early this year, fuel was about 12% of everything Cambodia imports (World Bank, June 2026). In March 2026, gasoline at the pump rose about 45% in one month. Diesel rose more than 70%. The World Bank calls it the largest one-month rise since 2008 (World Bank, June 2026).

In March, transport cost 12.9% more than a year before, and food 5.7% more. Overall inflation was 5.6% in March and 5.8% in April (World Bank, citing the National Institute of Statistics). By August, the latest month, it eased to 4.8% (National Institute of Statistics, August 2026).

From 21 September 2026, regular gasoline costs 5,250 riel a litre and diesel 6,100 riel. That is about 36% and 58% above the prices before the conflict (Ministry of Commerce, via Xinhua). For the whole of 2026, the Asian Development Bank (ADB) forecasts inflation of 4.7% (ADB, September 2026).

Why does it hurt families?

In 2023, food and non-alcoholic drinks took 49.7% of household spending (National Institute of Statistics, Cambodia Socio-Economic Survey 2023). That is about half of every riel a family spends. So when food and transport rise together, there is little room left.

A second source of income became weaker. In 2025, nearly 1 million migrant workers came home from Thailand. Remittances, the money Cambodians abroad send home, fell to 3.6% of GDP in 2025. That is down from an average of 6% in 2019–2024 (World Bank, June 2026). GDP is the total value of everything the country produces. For many families, a second income shrank as prices rose.

The latest official poverty rate is 17.8% (World Bank and Royal Government of Cambodia). But that figure is from 2019/20. It is more than six years old.

Who is involved

  • The National Council on Minimum Wage brings together government, employers and unions. Each year it discusses the minimum wage for garment, footwear and travel-goods workers. It was $204 a month in 2024 and $210 in 2026 (Open Development Cambodia; Cambodianess).
  • The government set the 2027 wage at $212 on 30 September 2026, starting 1 January 2027. Employers had proposed $210 and unions $225. With allowances, basic pay is about $229 to $240 a month (AKP, 30 September 2026).
  • The Ministry of Economy and Finance cut VAT, a tax added to the price of goods, on regular fuel from 10% to 4% from 20 March 2026 (Instruction No. 003).

Risks and open questions

The first risk is debt. In 2023, 33.8% of households carried a debt (National Institute of Statistics, 2023). That is about one household in three.

A non-performing loan is one that is not being repaid on time. At the end of 2025, 8.3% of loans at banks and deposit-taking lenders were non-performing (National Bank of Cambodia, Financial Stability Review 2025). Among members of the Cambodia Microfinance Association, 11.2% of loans were more than 30 days late in Q1 2026 (Cambodia Microfinance Association).

The second risk is the future. The ADB forecasts that inflation will ease to 2.8% in 2027 (ADB, September 2026). But that depends on oil prices. And with no poverty figure newer than 2019/20, it is hard to know how many families are poor today.

What it means for you

From 2024 to 2026, the minimum wage rose about 2.9%. Prices rose about 7.3% (ADB, April and September 2026). This combines 2.5% actual inflation in 2025 with the ADB's 4.7% forecast for 2026, compounded. So, by our estimate, the minimum wage now buys about 4% less. This is our estimate, not an official figure.

Picture a moto driver who uses 2 litres of gasoline a day. By our estimate, the driver pays about 2,800 riel more each day than before the conflict. That is roughly $20 a month.

In a World Bank simulation, fuel prices rise 60%. Then about 1.1 million people could fall into poverty. The poorest tenth of households would lose about 8% of what they consume (World Bank, June 2026). This is a model, not a count.

Different views

How high will inflation go in 2026? Forecasts differ, partly because they were made at different times.

  • In July 2026, AMRO, a regional research office, forecast 5.1% (AMRO, via Cambodia Investment Review).
  • In July 2026, IMF staff forecast 5.6% (IMF, 8 July 2026).
  • In September 2026, the ADB forecast 4.7%.

Was the 2027 minimum wage enough?

  • Unions and 125 civil society groups wanted more. Their own studies say pay covers only about 60% of household spending (CamboJA News, 19 September 2026).
  • The Labour Minister spoke of "difficulties in raising wages." He pointed to global uncertainty, the energy crisis, and lower wages in some countries in the region (CamboJA News).
  • The government said it considered "the livelihoods of workers and employees" (AKP).

Is microfinance debt a risk?

  • Human Rights Watch reported over-indebtedness among Indigenous borrowers, including forced land sales (Human Rights Watch, September 2025). Several lenders it named denied aggressive practices.
  • The Cambodia Microfinance Association calls the sector "highly resilient" (Q1 2026).

How should a government help?

  • Cambodia chose a broad fuel tax cut. The government says it aims to ease the impact of world oil prices and reduce living costs (Ministry of Economy and Finance).
  • The World Bank prefers "targeted, time-bound cash transfers to vulnerable households." It says this protects the poorest at lower cost (World Bank, June 2026).

About the data

  • Inflation and fuel prices are from 2026. Household data is from a 2023 survey. The poverty rate is from 2019/20.
  • 4.7% (2026) and 2.8% (2027) are ADB forecasts. The AMRO and IMF figures are separate forecasts, made at different times.
  • The buying-power and moto figures are our own estimates. The first uses a 2026 forecast. The 1.1 million figure is a simulation.
  • The $212 wage for 2027 is approved and starts on 1 January 2027. The fuel VAT cut is approved policy.
  • Monthly inflation and yearly averages come from different series. The 8.3% and 11.2% loan figures use different measures and cannot be compared.

资料来源

PDF slides
  1. Cambodia Economic Update, June 2026World Bank · Jun 2026
  2. Final Report of Cambodia Socio-Economic Survey 2023National Institute of Statistics
  3. Asian Development Outlook April 2026: CambodiaAsian Development Bank · Apr 2026
  4. Cambodia: Economy (ADO September 2026)Asian Development Bank · Sept 2026
  5. National CPI releasesNational Institute of Statistics
  6. Cambodia Sets 2027 Minimum Wage for Garment Workers at US$212Agence Kampuchea Presse (AKP) · Sept 2026
  7. Cambodia's fuel prices continue to surge amid ongoing Middle East tensionsXinhua (citing Ministry of Commerce) · Sept 2026
  8. Instruction No. 003 on VAT for gasoline and diesel (summary by DFDL)Ministry of Economy and Finance / DFDL
  9. Financial Stability Review 2025National Bank of Cambodia
  10. Cambodia Poverty Assessment 2022: Toward a More Inclusive and Resilient CambodiaWorld Bank · Nov 2022
  11. Strong Policy Action Key to Protecting Cambodia's Jobs and Livelihoods Amid ShocksWorld Bank · Jun 2026
  12. Minimum Wage Set at $210 for GTF WorkersCambodianess · Sept 2025
  13. Minimum wage (2024 and 2025 decisions)Open Development Cambodia
  14. Employers Hold Firm at $210 in Third Round of 2027 Minimum Wage TalksCamboJA News · Sept 2026
  15. Q1 2026 sector updateCambodia Microfinance Association
  16. Debt Traps: Predatory Microfinance Loans and Exploitation of Cambodia's Indigenous PeoplesHuman Rights Watch · Sept 2025
  17. Staff end-of-mission press release No. 26/241 (mission 24 June–8 July 2026)IMF · Jul 2026
  18. ASEAN+3 Regional Economic Outlook July 2026 update, as reported by Cambodia Investment ReviewAMRO / Cambodia Investment Review · Jul 2026

Disclaimer: Figures are compiled from public sources believed to be reliable at the time of writing. Data can differ between sources and may be revised later. This brief is for educational purposes only and is not financial, investment or legal advice. The Camdex Lab is independent and is not affiliated with, or endorsed by, any organization cited. Found an error? Email info@thecamdexlab.com and we will correct it.

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