The Ministry of Commerce has recently announced that Thailand’s headline inflation rate increased 5.28% year on year in February. The figure was the highest rate jump in 13 years and surpassed the Bank of Thailand’s inflation forecast for 2022.
According to the ministry, key contributors to the unexpected increase have been rising energy and food prices. Energy costs, including electricity and fuel, have increased 29.2% while food prices have climbed 4.51% from the same period last year. The Bank for Agriculture and Agricultural Cooperatives has also reported that prices for agricultural and farm products – such as jasmine rice, live pigs, palm oil, and rubber sheets – have risen as well.
The Trade Policy and Strategy Office (TPSO) expects headline inflation in March 2022 to remain high due to the rise in energy prices compared to the previous year due to domestic and global factors.
Meanwhile, the Bank of Thailand recently expressed concern over inflation and said it would monitor the ongoing Russia-Ukraine conflict. The BoT is expected to reassess its figures during its rate-setting committee meeting on March 31. (NNT)
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