Looming rises in transport costs worry consumers
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Consumers have expressed deep concern over rising transport costs, as their incomes have not increased to cover the higher cost of living.
However, according to the Commerce Ministry, the rising cost of transport – including highway tolls and taxi fares, subway tickets and prices of liquefied petroleum gas (LPG) and natural gas for vehicles – will only mark up inflation by less than 0.1 percentage point a month.
The ministry yesterday reported that the Consumer Price Index last month rose by only 1.48 per cent year on year, the slowest pace in one year, on falling fuel prices and the stumbling economic recovery.
Compared with September, the CPI was down 0.1 per cent. Inflation in the first 10 months was 2.08 per cent year on year, which is under the ministry’s forecast of 2.14 per cent for the whole of 2014.
“Inflation will still be low in the remaining two months of this year and next year thanks to easing pressure from fuel prices in the global and domestic markets, and most goods prices will remain unchanged,” said Amparwon Pichalai, deputy permanent secretary of the ministry.
Although the price of gas climbed last month, and tolls and taxi rates will go up late this year and in 2015, they will only push up the inflation rate by less than 0.1 percentage point each month.
The increases in taxi and subway fares and highway tolls will only affect people in Greater Bangkok.
Cab fares are scheduled to rise by 13 per cent early next year. Subway tickets will increase by Bt1 per station next month, and tollway fees will increase from Bt85 to Bt100 on December 22.
Nuschanok, 35, a company employee, said the surge in transport costs would cause trouble for her family as expenses would rise, while incomes have not increased or will increase less than inflation.
“Normally, my salary will go up only 3-4 per cent a year. But I worry about the higher cost of living, as I normally use public transport and taxis,” she said.
Worawut, a food retailer, said he normally used his own car. If the cost of cooking gas increases, he may need to pass the burden to his customers by adding Bt5 to the retail price of each dish next year.
The Commerce Ministry predicts second-half inflation at 2.05 per cent. In the fourth quarter, inflation is projected at 2.1 per cent year on year.
The expected increase in the price of LPG in the remaining months will have a slight impact on inflation of 0.0008 percentage point a month. And if the LPG price increases next year, it will drive up inflation by 0.01 percentage point.
Increasing taxi fares by 13-20 per cent depending on distance will drive up inflation by 0.000144 percentage point a month, and higher tollway fees will push up inflation by 0.00103 percentage point a month.
In October, from the ministry’s inflation basket of 450 items, prices increased for 205 components, such as fruit, soap, meat and rent, while 154 remained unchanged and 91 decreased from the previous month, including pork, eggs and cooking oil.
Core inflation, which excludes volatile fuel and food prices, was 1.67 per cent year on year in October, and 0.06 per cent compared with September. Core inflation was running at 1.57 per cent during the first 10 months, which is within the Bank of Thailand’s target range of 0.5-3 per cent.
