Thai inflation rate in August rose by 0.88 percent due to the rising costs of oil prices, according to the Commerce Ministry. The inflation forecast for the entire year is expected to be between 1.0 and 2.0 percent.
Mr. Poonpong Naiyanapakorn, the director of the Office of Trade Policy and Strategy, disclosed that Thailand’s Consumer Price Index (CPI) for August 2023 increased by 0.88 percent, slightly up from 0.38 percent in July 2023. This increase is attributed to the rising prices of energy-related products, following the global increase in fuel prices, with the exception of diesel prices, which decreased.
Public transportation costs, such as airfare, taxi services, and small buses, have increased due to rising operating costs. Moreover, the prices of electricity, cooking gas, and personal care items like cosmetics, tissues, and toothpaste have increased, while fresh food prices remain stable, and meat and cooking ingredients prices have decreased. Overall prices of food and beverages have slowed down.
When comparing Thailand’s inflation rate with other countries, it is evident that many nations are experiencing a slowdown in their inflation rates, except for some countries facing drought and volatile weather conditions. In particular, India has witnessed a significant acceleration in its inflation rate.
Thailand’s general inflation rate remains low and consistently one of the lowest in ASEAN. This marks the fifth consecutive month Thailand’s inflation rate has remained the lowest among the seven ASEAN countries that have reported figures (Laos, the Philippines, Singapore, Indonesia, Malaysia, and Vietnam).
For the Consumer Price Index for the first eight months of 2023 (January to August), it has risen by 2.01 percent, compared to the same period in the previous year, which is within the target range set by the Ministry of Finance and the Monetary Policy Committee of 1.0 to 3.0 percent.
The general trend of the inflation rate in September 2023 is expected to remain stable or slightly increase. Factors contributing positively to the inflation rate include energy prices, including fuel, electricity, and and cooking gas which remain high.
Additionally, there might be an increased demand due to the government’s new economic stimulus measures.
Severe drought conditions in various countries worldwide have led to decreased agricultural and livestock production, resulting in higher prices for food and related products. (TNA)
