Inflation expected to come in at a low 3-3.1% this year

However, the ministry can say nothing about next year, as price pressures will depend on both positive and negative factors such as the minimum-wage increase to Bt300 per day nationwide early next year and strong economic growth.
The ministry reported that the Consumer Price Index in the first 10 months of the year rose 2.99 per cent year on year. The CPI for October alone climbed 3.32 per cent year on year and slightly by 0.13 per cent month on month.
Permanent secretary Vatchari Vimooktayon said that compared with other countries in the region, Thailand’s inflation was quite steady this year, showing strong economic growth.
In the first nine months, inflation in the Philippines was 3.17 per cent, in mainland China 2.85 per cent, Hong Kong 4.17 per cent, Malaysia 1.81 per cent, Japan 0.02 per cent, Singapore 4.77 per cent, India 9.06 per cent, Laos 4.5 per cent and Vietnam 10.1 per cent.
Inflation this final quarter was forecast at 3.2-3.5 per cent because of the reduced pressure from rising oil prices, as the government is controlling the price of diesel, which is one of the major components in goods-transport costs.
The tamer increase in inflation last month reflected the rise in the food and beverage price index by 3.35 per cent and in non-food by 3.28 per cent. Fruit and |vegetable prices were the main driver.
Transport and communications, including mobile-phone service, jumped by 4.22 per cent.
To ensure fair prices and treatment for consumers, mobile-phone service, Internet access and Wi-Fi will be counted in inflation calculations soon.
In October, core inflation rose 1.83 year per cent on year and 0.02 per cent from September. Core inflation in the first 10 months was 2.15 per cent year on year, well within the Bank of Thailand’s projection of 0.5-3 |per cent.