BANGKOK, 3 February 2014 The Kasikorn Research Center (KResearch) has reported that the inflation rate in January increased to 1.93% while projecting that the 2014 inflation will move in an average range of 2.2-2.6%.
According to KResearch, the consumer price index in January rose 0.42% from the month before due mainly to higher food prices during Chinese New Year, particularly in the meat, poultry, seafood and ready-to-eat food categories. Hikes in fuel and electricity prices also drove up the index.
Although the overall January inflation is considered to remain at a low level, the headline inflation hit its 6-month high at 1.93% while the core inflation edged up for the fourth consecutive month to 1.04%.
KResearch forecast that the headline inflation would reach 2% in the first quarter of this year and would average 2.2-2.6% for the whole year. The core inflation, meanwhile, is expected to move up to 1.3-1.7%. Nonetheless, the upward adjustments are unlikely to have impact on the monetary policies of the Bank of Thailand.
Despite the acceptable inflation rate, the center believed household spending would remain sluggish throughout the year as a consequence of concerns over soaring household debt and product prices.
