Thailand
Thailand: Inflation on steady track in February
Consumer prices rose for the 11th straight month in February, driven by higher costs for oil, liquefied petroleum gas (LPG) and fresh food.
The Commerce Ministry said the consumer price index (CPI) based on 422 products and services rose 1.44% last month year-on-year but eased from January, when the index rose 1.55% year-on-year — the fastest pace in more than two years. On a monthly basis, consumer prices rose 0.04% from January on higher costs for transport, communications and housing, all of which were affected by a 67-satang increase in the LPG retail price.
The Energy Policy and Planning Office approved the increase to 20.96 baht a kilogramme on Feb 6 to reflect global LPG prices. The retail price rise was the first since February 2016, but policymakers expect gradual price declines throughout 2017.
Core inflation, which excludes food and energy prices, was 0.59% year-on-year and 0.02% on a month-to-month basis in February.
For the first two months of the year, headline inflation was 1.49% on an annual basis, with core inflation 0.67%.
Pimchanok Vonkorpon, director-general of the Commerce Ministry’s Trade Policy and Strategy Office, said the major drivers for higher prices last month were oil, cooking gas, and some fresh food items such as chicken, shrimp, fruit and vegetables because of the Chinese New Year and flooding in southern provinces.
Higher prices for air tickets were attributed to an excise tax increase, she said.
Ms Pimchanok said 129 consumer products recorded price increases, with 114 items such as milled rice, pork, food delivery and eggs falling.
To make the CPI reflect the purchasing behaviour of Thais, last month the ministry removed condoms, mosquito nets, water heaters and dry batteries from its basket of consumer goods and added spicy papaya salad (som tam), mobile phones and internet fees.
She said the ministry is closely monitoring product prices to ensure an increase will not adversely affect consumers.
The ministry set a 2017 inflation target of 1.5-2%. The target is based on GDP growth of 3-3.5%, crude oil prices in a range of US$45-$55 a barrel and a foreign exchange rate of 35.50-37.50 baht to the US dollar.
Thanavath Phonvichai, vice-president for research at the University of the Thai Chamber of Commerce, said higher prices in February were largely because of higher global oil prices, averaging $55 a barrel from $45 the same month a year ago, which lifted commodity prices accordingly.
Source: http://www.bangkokpost.com/business/news/1207445/inflation-on-steady-track-in-february