May inflation rate soars to highest in 13 years: TPSO
Thailand’s inflation rate in May jumped to its highest in 13 years just as the rates in several Asean countries are rising.
The Trade Policy and Strategy Office (TPSO) reported that Thai inflation in May was 7.10 per cent, the highest in 13 years.
And the rate is generally rising: it was 3.23 per cent in January, 5.28 per cent in February, 5.73 per cent in March, and 4.65 per cent in April before jumping to 7.10 per cent in May.
The TPSO sees Thailand's inflation rate moving in the same direction as that of several other countries.
It pointed out that high inflation is caused by increasing energy and food prices, especially high fuel prices.
Meanwhile, the producer price index (PPI) in May grew by 13.3 per cent for all product types.
The TPSO said this was because of high energy prices, shipping costs, imported material prices, a weakening baht and other manufacturing costs, while demand in Thailand and abroad is still high.
The PPI for construction material is also up as the sector grew by 6.5 per cent, but now the growth rate is slowing down, the office said.
The consumer confidence index dropped from 45.7 in the previous month to 44.7 because external risks have affected the economic situation, negatively affecting the price of oil, fuel and consumer goods, while some government subsidy schemes have ended despite Covid-19 still spreading, even though at a slower rate.
The TPSO expected inflation to continue to rise in the next few months as the energy price is unlikely to come down. The high inflation rate will inevitably hit consumers’ pockets as their expenses will rise and purchasing power will decrease.
The office mentioned that the Commerce Ministry is trying to prevent manufacturers from raising product prices but the actual prices have already increased.
It advised all sectors to keep a close eye on and prepare for higher inflation.