Thailand
Thailand: Consumer prices up for 13th straight month
Thailand’s headline inflation rate, as gauged by the increase in the consumer price index (CPI), picked up to 1.46% in July after easing to 1.38% in June.
The Commerce Ministry reported on Wednesday that consumer prices rose for a 13th straight month in July, mainly driven by higher prices in energy, tobacco and alcoholic drinks; housing and furnishings; rice, flour and cereal products; seasonings and condiments; and prepared food.
Of the 422 product and service items used to gauge inflation, the prices of 224 items such as milled rice, coffee, liquefied petroleum gas (LPG), diesel, cigarettes and beer rose last month. No price changes were registered for 84 items, while 114, including fruit and vegetables, saw prices drop.
On a monthly basis, the ministry reported that prices continued contracting by 0.05% last month after a 0.09% drop in June against a 0.56% increase in May.
The fall mainly resulted from lower prices for fresh food such as vegetables, fruit, meat, eggs and dairy products.
The inflation rate for the first seven months was 1.04%, boosted by transport, communications, housing and furnishings.
Core CPI, which excludes raw food and energy prices, rose 0.79% year-on-year in July and 0.04% month-to-month. For the past seven months, core inflation averaged 0.7%.
“Inflation is in an upward trend, boosted by higher consumption, investment stimulus measures, accelerated government spending and the growing domestic and global economies,” said Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office.
Ms Pimchanok said the office forecast inflation will stand at 1.35% in the third quarter and 1.5% in the fourth quarter, with the annual rate staying at 1.2%, within the ministry’s range of 0.8-1.6%.
This half, the ministry predicts the crude oil price to average US$65-75 per barrel, with the exchange rate at 32-34 baht per US dollar.
Thanavath Phonvichai, vice-president for research at the University of the Thai Chamber of Commerce, said that given July’s inflation rate, Thailand’s economy remains fragile despite showing signs of recovery.
Local purchasing power is yet to fully recover, as farm prices have not significantly increased and people are reluctant to spend.
The government thus needs to keep spurring the provincial and regional economies and push up farm product prices, Mr Thanavath said.
“Nonetheless, we are positive that the overall Thai economy will improve on a gradual basis as exports and tourism remain on course to healthy growth, in line with the world’s growing economy,” he said.
Source: https://www.bangkokpost.com/business/news/1514098/consumer-prices-up-for-13th-straight-month