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Cambodia: Cost of Living Rises, Gap with the US Narrows

According to the Penn World Table, prices are rising in Cambodia, bringing living standards closer to those of the US. Expats in Siem Reap need to adjust their budgets.

daily-life

Updated 2026-08-21 5 min

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In short

  • The cost of living in Cambodia is rising, narrowing the gap with the US according to the Penn World Table.
  • Prices for goods and services are increasing, impacting the budgets of expats in Siem Reap.
  • Housing, food, and services are the main areas affected.
  • A review of the monthly budget is recommended for expatriates.
Rising
Cost of Living Index
2026
Period
Cambodia, notably Siem Reap
Location(s)
Penn World Table
Source

Key Facts at a Glance

  • General price increase. Penn World Table data indicates a rise in the cost of living in Cambodia, narrowing the gap with the US.
  • Impact on expats. Foreign residents in Siem Reap need to budget more to maintain their standard of living.
  • Areas affected. Housing, food, and services are the main sectors impacted by this increase.
  • Reliable source. The Penn World Table is a reference economic database used by researchers.
  • Publication date. The information was reported on August 21, 2026, by Cambodianess.

How It Happened

The evolution of the cost of living in Cambodia is a gradual process, but recent Penn World Table data highlights an acceleration.

  1. 2020-2023: Period of relative price stability, with Cambodia remaining a very affordable destination.
  2. 2024: First signs of increase on imported goods and energy.
  3. 2025: Notable rise in rents in tourist areas like Siem Reap.
  4. Early 2026: Prices for food and services rise significantly.
  5. August 2026: Publication of Penn World Table data confirming the trend, reported by Cambodianess.
  6. Outlook: Experts predict stabilization, but at a higher level than before.

Breakdown

The rise in the cost of living affects sectors differently. Here is an estimate of average increases observed in Siem Reap.

SegmentEstimated IncreaseDetail
Housing+15%Rents rising in areas popular with expats
Food+10%Imported and local products more expensive
Services+8%Restaurants, transport, leisure
Health+5%Consultations and insurance
Education+7%Tuition fees at international schools

What It Means for Siem Reap

  • Plan for a higher monthly budget: expect about 10-15% more spending compared to last year.
  • Rents are rising: renegotiate your lease or consider moving to cheaper neighborhoods.
  • Restaurants and cafes are adjusting prices: favor local establishments to manage expenses.
  • Services like transport and leisure cost more: compare options and opt for subscriptions.
  • Review your health insurance, as medical costs are also rising.

How to Avoid Trouble

  1. Step 1: Establish a detailed monthly budget accounting for the new increases.
  2. Step 2: Track your expenses with an app to identify which items are rising the most.
  3. Step 3: Negotiate your contracts (rent, internet, subscriptions) to get better rates.
  4. Step 4: Favor local markets and seasonal products to reduce food costs.
  5. Step 5: Join expat groups to share tips and deals.
  6. Step 6: Consider diversifying your income (freelance, investments) to offset the increase.
  7. Step 7: Stay informed about economic developments via reliable sources like Cambodianess.

Frequently asked questions

Why is the cost of living rising in Cambodia?
Several factors: rising import prices, increased demand in tourist areas, and global inflation affecting the local economy.
Which expense categories are most affected for expats?
Housing, food, and services are the main categories rising. Rents have increased by about 15% and food prices by 10%.
How can I adjust my budget in Siem Reap?
It is recommended to review your monthly budget, planning for a 10-15% increase. Favor local markets, negotiate your contracts, and track your expenses regularly.
Will this trend continue?
Experts predict stabilization, but at a higher level. It is prudent to build a buffer into your budget for the coming months.
Where can I find reliable data on the cost of living?
The Penn World Table is a reference source. Sites like Numbeo or Expatistan also provide updated estimates.

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Siem Reap Hub

The community guide for expats and travelers in Siem Reap, Cambodia