Inflation ‘on upward trend’ as Thai consumers exit lockdown

[snoop1130]

Inflation ‘on upward trend’ as Thai consumers exit lockdown

By The Nation

 

Pimchanok Vonkorpon

 

Inflation dropped by 1.57 per cent year on year in June but is on an upward trend as the lockdown is lifted, the Commerce Ministry reports.

 

Pimchanok Vonkorpon, director-general of the ministry’s Trade Policy and Strategy Office, said that while inflation fell in June, it had risen 1.56 per cent in May. Monthly inflation in the first half of 2020 fell by an average 1.13 per cent, she added.

 

“The inflation situation is improving as Covid-19 restrictions are eased and government measures bring economic improvements in services, retail, transportation and tourism, as measured by indices such as the Consumer Confidence Index and Producer Price Index,” Pimchanok said.

 

The director-general pointed to May’s upward trend and said inflation is expected to rise towards normal territory in the third and fourth quarters.

 

Pimchanok cautioned that power prices are likely to rise for Thai consumers after Opec cut oil production, while lingering drought conditions were still creating uncertainty over Thai agricultural products.

 

However, economic conditions meant inflation will stay in negative territory. The Commerce Ministry has adjusted its projected 2020 inflation range from -0.2 to -1 per cent (median -0.6 per cent) to -0.7 to -1.5 per cent with a median of -1.1 per cent.

 

Source: https://www.nationthailand.com/news/30390744

 

-- © Copyright The Nation Thailand 2020-07-03

 

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[Pedrogaz]

I do hope this is temporary and that we will enter a deflationary spiral very soon ????

[KhunBENQ]

Rising, rising, rising. Almost no offers/discount for the daily needs.

Discounts on clothing/shoes do not compensate.

Bought my usual chewing gum at 7/11.

18 after 12!

Sure it's not stressing my budget, but what justifies a 50% rise?

[Isaan sailor]

So inflation seems on the rise—good.  Now BoT can lower interest rates to tame it.  Maybe then the Baht can come back down to Earth.

[Airalee]

4 minutes ago, Isaan sailor said:

So inflation seems on the rise—good.  Now BoT can lower interest rates to tame it.  Maybe then the Baht can come back down to Earth.

Central banks raise interest rates to tame inflation....which leads to a stronger baht.

[kingofthemountain]

19 hours ago, snoop1130 said:

Pimchanok Vonkorpon, director-general of the ministry’s Trade Policy and Strategy Office, said that while inflation fell in June, it had risen 1.56 per cent in May. Monthly inflation in the first half of 2020 fell by an average 1.13 per cent, she added.

Obviously she doesnt shop at Big C

where the price of most of my regulars food products

has risen up around 5 to 20 % in the last 2 months

Edited July 4, 2020 by kingofthemountain

[Mavideol]

19 hours ago, snoop1130 said:

The director-general pointed to May’s upward trend and said inflation is expected to rise towards normal territory in the third and fourth quarters.

we have to give them credit for their sense of humor and optimism 555

[tomauasia]

45 minutes ago, Airalee said:

Central banks raise interest rates to tame inflation....which leads to a stronger baht.

The country is a complete mess under team Pinnochio 

[vivananahuahin]

We are in a deflation in a recession,the next step is a depression,and then coming the big problems for the currency,the baht is for the moment 15% too high and it is not due the market,big surprises will coming very soon.

[kingofthemountain]

3 hours ago, vivananahuahin said:

We are in a deflation in a recession,the next step is a depression,and then coming the big problems for the currency,the baht is for the moment 15% too high and it is not due the market,big surprises will coming very soon.

Only 15 %? If a currency is the ''reflect'' of the state of the economy

i can see the baht at least 30 % too high, and it's not going better in the next months

[Mike Teavee]

31 minutes ago, kingofthemountain said:

Only 15 %? If a currency is the ''reflect'' of the state of the economy

i can see the baht at least 30 % too high, and it's not going better in the next months

Yes but will it do as badly as our home currencies (in my case GBP)?

 

The Baht dropping by 30% is not much use if GBP drops by the same (or more) ????