February headline inflation hits highest level in 13 years
The headline inflation in February rose to 104.10 points, the highest in 13 years, the Trade Policy and Strategy Office announced on Friday.
Ronnarong Phoolpipat, director of the Trade Policy and Strategy Office, said headline inflation in February was 5.28 per cent higher than in the same month last year and 1.06 per cent higher than in January 2022.
He said the increase in inflation was mainly because the prices of energy and foods and non-alcoholic beverages rose because of their rising cost.
Ronnarong said core inflation in February rose by 1.8 per cent year on year and 0.52 per cent month on month.
“The headline inflation in February was the highest in 13 years — since 2008. Inflation could increase by 4 to 5 per cent if energy prices continued to rise and if the global oil price was over US$100 [3,200 baht] per barrel,” Ronnarong said.
He reasoned that oil prices contributed to 62.26 per cent of the figures for calculating the inflation index.
Although the inflation index had risen, there were other indicators that the Thai economy would improve, Ronnarong said.
He said the rising demand for new motorcycles and vehicles, reflected in the rising registrations in January 2021, increase in farmers’ income, increase in property tax collections, and increase in investments by the public sector were indicators of an improving economy.
He said the inflation index will continue to rise in March, year on year, in line with the high energy prices and rising electricity rates. The rising energy costs and higher power bills would cause the prices of instant foods and food ingredients to continue to rise.
But he expected the inflation index would later be adjusted to a proper level because the prices of fresh foods, including pork, vegetables and fruits, had started to go down and the government is continuing to implement measures to reduce the cost of living.
Ronnarong said the Commerce Ministry expects the inflation index in 2022 to see wide fluctuation but the ministry would re-evaluate the situation and adjust inflation forecast at the end of March.
