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Thailand: Prices rise for fourth month
Consumer prices rose for the fourth straight month in October for an inflation rate of 0.86%, according to the Commerce Ministry.
The year-on-year rise was driven by rising prices of seasonal fresh food and oil and higher cigarette and liquor prices because of an increase in excise tax.
Inflation for the first 10 months (January to October) was 0.62%, still in the target range of 0.4-1.0% set by the ministry, leaving room for the central bank to keep monetary policy loose to support growth.
Pimchanok Vonkorpon, the director-general of the Trade Policy and Strategy Office, said the rise in the October consumer price index (CPI) was driven by higher vegetable and fruit prices during the vegetarian festival, which was reflected in a 0.4% increase in the food and beverage price index.
The non-food index rose 1.11% in the wake of higher oil prices and a jump in liquor and cigarette prices as a result of the restructured excise tax.
The CPI was calculated from a survey of 420 items. The survey showed that 137 items saw higher prices, including vegetables, fruits, fresh milk, ready-to-eat food and housing.
Prices of about 200 items remained steady, and 85 items, such as pork, poultry and eggs, saw a fall in price due to lower demand during the vegetarian festival.
The core CPI index, which excludes volatile food and energy prices, rose 0.58% in October compared with the same period last year.
The average core CPI for the first 10 months rose 0.5% on year.
Ms Pimchanok said the Commerce Ministry expects inflation in the fourth quarter of 1% as year-end festivities spur spending.
Average inflation for the whole of 2017, however, is forecast in a range of 0.4-1%.
Ms Pimchanok said the 2017 average inflation view assumes GDP growth of 3-4%, a Dubai crude oil price of US$45-55 a barrel and an exchange rate of 33.50-34.50 baht to the US dollar.
The ministry predicts that the government’s state welfare measures will help curb living costs.
“The inflation rate may near 0.8% this year, but it is unlikely to reach 1% because the welfare measures should help curb the rise of living costs,” Ms Pimchanok said.
Source: https://www.bangkokpost.com/business/news/1352859/prices-rise-for-fourth-month