March sees rise in inflation rate to 3.45%

The first three months recorded an annualised inflation rate of 3.39 per cent.

Yanyong Phuangrach, permanent secretary of the Commerce Ministry, said the inflation could be blamed on the continually rising prices of fresh foods and vegetables. The prices of products, both food and non-food items, are going up because of rising global oil prices as well as the government collecting money for the Oil Fund. In addition, climate change is having a direct effect on manufacturing costs. 

The ministry reported that rising costs of other goods and services, such as rents, utilities, construction materials, garments and textiles, personal goods, automobiles, energy, finished foods and non-alcohol drinks, were also contributing factors.

Yanyong, however, insisted that inflation for the entire year would come in at 3.3-3.8 per cent, adding that the increase in daily minimum wage only affected inflation by 0.1 percentage point, while boosting the starting monthly salary of officials to Bt15,000 only contributed 0.01 percentage point. The 12-per-cent increase in the cost of meter taxis will only affect inflation by 0.028 percentage point, and the reimposed excise tax for air-conditioning by only 0.07 point. 

He said the price of oil was an important factor contributing to inflation, and predicted that chaos in the Middle East could increase the price of crude oil from $115 to $120-$130 per barrel. 

Meanwhile, Deputy Commerce Minister Poom Sarapol said the ministry would closely monitor the export market to see if it is adversely affected by the increase of the minimum daily wage to Bt300 in seven provinces including Bangkok, which took effect on April 1. 

“We accept that new minimum wage will directly affect production costs, but then again, bombings in the South have not affected Thailand’s plan to create a regional export hub for halal food products,” Poom said. 

The ministry has ordered its commercial counsellors overseas to monitor the situation closely and work towards ensuring that this year’s plan for 15-per-cent export growth is achieved. 

“The ministry is confident that exports in the second quarter will show positive signs once manufacturers resume work after being hit by last year’s flood crisis,” Poom said.