Lowest inflation in June clouds consumer confidence
Play
Inflation in June crawled at its slowest pace in almost four years, prompting concern for spending confidence among consumers, although the moderate price rises here were within the scope of other countries in the region.
“Although inflation has continued to drop, Thailand has not yet faced deflation. Consumers are still spending money as usual. The lower inflation last month was due to less pressure from rising foods and goods prices following the raining season,” Vatchari Vimooktayo, permanent secretary of the Commerce Ministry, said yesterday.
The ministry reported that the consumer price index in June grew 2.25 per cent year on year, the lowest reading in 43 months since November 2009, due mainly to the mild increase in foods and goods prices. The CPI was up 0.15 per cent from the previous month.
In the year to June, inflation rose 2.7 per cent, below the ministry’s target range of 2.8-3.4 per cent this year, which assumed the average fuel price at US$100-$120 a barrel and the exchange rate at Bt28.5-Bt32.5 against the greenback.
Inflation this second half of the year should grow steadily as fuel and goods prices were expected to remain stable. However, the hikes in the cooking gas price and expressway tolls early this month could kick inflation up in the rest of the year.
Fresh food prices last month increased by 3.52 per cent year on year, mainly due to vegetables, fruits, eggs, rice and processed foods.
Among the 450 goods and service in the ministry’s inflation basket, the prices of 211 products increased last month, while the prices of 84 products decreased and 155 products were unchanged.
Non-food and beverage prices edged slightly up last month by 1.59 per cent on year, mainly due to fuel, as well as utilities and electricity.
Core inflation last month, excluding fresh food and fuel, ran 0.88 per cent on year and 0.09 per cent on month. Core inflation in the first half was 1.23 per cent, which remains well within the central bank’s target band of 0.5-3 per cent.
