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Thailand: High inflation hitting low-income workers hardest: BOT

  • Feb 14, 2022

High inflation expected to last for the first half of 2022 is disproportionally affecting low-income workers, service staff and the self-employed, the Bank of Thailand (BOT) said on Sunday.

Inflation in January stood at 3.23 per cent as the price of oil and products such as pork rose in line with higher demand, said bank officials. The bank expects inflation to rise above its target range of 1-3 per cent in the first half of 2022 before falling back.

Inflation is hitting low-income people because they spend 45 per cent of their income on food and beverages, compared to just 26 per cent for high-income people, the bank said.

“Service sector workers and the self-employed are facing impacts from both high product prices and low incomes as their income is recovering more slowly than in the manufacturing sector,” BOT said.

It pointed out that the workers most vulnerable to inflation usually have household debts.

The BOT said it was mitigating the impact of inflation by keeping the interest rate low and launching soft loans, debt restructuring and debt clinics.

 

Published : February 14, 2022

By : THE NATION