Thailand's inflation lowest in South-East Asia

BANGKOK (Bernama-VNA): Thailand’s inflation rate is the lowest among the seven Asean countries which have already announced their rates, with inflation for the whole year expected to range between 1 per cent and 2 per cent, according to Poonpong Naiyanapakorn, director of the Commerce Ministry’s Trade Policy and Strategy Office.

He said Thailand’s low inflation rate is in line with global inflation, which is steadily falling.

The consumer price index for July is equivalent to 107.82, up 0.38 per cent year on year.

The low inflation rate is attributable to a drop in food prices, such as pork, which has declined for three consecutive months, and energy prices falling for five months in a row, Vietnam news agency (VNA) reported.

Prices of food and non-alcoholic drinks in July increased an average of 1.49 per cent year on year.

However, the prices of farm products, such as eggs, rambutan, vegetables, lime, ginger and tomato remain high due to low yields caused by climatic change, it reported Poonpong said.

Non-food products, such as electrical appliances, garments and smartphones witnessed a price decrease of 0.38 per cent against the same period last year while cooking gas prices, public transport fares and personal services rose compared to the corresponding period last year.

Poonpong said that the basic inflation rate, excluding fresh food and energy, was up 0.86 per cent year on year. The inflation rate for the first seven months of this year increased by 2.19 per cent from the same period last year, which is within the range set by the Fiscal Policy Office.

The consumer confidence index for July dropped to 53.3 from 56.1 in June, representing a fall for eight consecutive months, due to political uncertainties and the increased prices of oil and petrol.

The official said that Thai people in general still have confidence in the strength of the Thai economy, thanks to the continued economic and tourism recovery. - Bernama-VNA