Inflation rises for third month
THAILAND’S headline consumer prices rose in September to mark a third straight month of gains amid increases in the prices of oil and vegetables, and rises in excise taxes for cigarettes and liquor.
Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office (TPSO) at the Ministry of Commerce, said that its consumer price index (CPI) edged 0.58 per cent from a month earlier and 0.86 per cent from a year before.
For the first nine months of this year, the headline CPI advanced 0.59 per cent from the same period of last year. The increase was largely driven by higher fuel bills following rises in global crude prices and higher prices of cigarettes and liquor as a result of the new excise scheme, which took effect from September 16.
The country's retail oil prices climbed 8.15 per cent, while those for cigarette and liquor inched up 2.06 per cent and their impact was expected for only last month. Vegetable prices went up 4.57 per cent due to frequent rains and floods in some growing areas. But prices declined for other products, including rice, flour and flour products, meat, egg and dairy products and fresh fruit.
Core consumer prices, which exclude volatile fresh food and fuel prices, edged up 0.09 per cent in September from a month earlier and 0.53 per cent from a year ago. The nine-month figure rose 0.54 per cent. Given no price pressures and the government's measures to assist low-income earners, the TPSO revised its target for this year's headline inflation to 0.4-1 per cent, from 0.7-1.7 per cent.
The revision was based on economic growth of 3.4 per cent this year, Dubai crude oil at US$45-$55 a barrel and the baht trading at 33.40-34.50 per US dollar. The earlier forecast for Dubai crude price and the baht were $50-$60 a barrel and 35.50-37.50 per US dollar.
Pimchanok said: “The cut is due to product prices which tend to be steady. There's no pressure to push up produce prices. And there's benefit from the government's measure to help low-income earners through state welfare cards aiming to reduce their spending.”
Although the global crude price edged up, it was not by much, she said, advising caution given the uncertainties in the policies of Thailand’s trading partners.
