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.
It fell by another 0.7% in January 2021, prior to the military coup. However, food and fuel prices increased to 7.3% in September 2021 (the second fiscal year) following the military coup.
Food items excluded, inflation rose sharply from 0.6% in January to 9.8% in December as a result of a significant rise in transportation costs.
Myanmar’s current inflation situation is comparable to that of 1988.
An ostracize financial specialist said: ” 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. Because the crisis that began in 1986 reached its height during the experience of 1988. 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. Because of these costs, the majority of the working class pays more for the goods they use. 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 an issue in Burma alone. ”
The leader of the coup claimed that the economy of Burma had improved as a result of the military coup on February 1.