Inflation plummets to 21-month low in Thailand as fuel and electricity prices drop

[snoop1130]

 

Inflation in Thailand reached its lowest point in 21 months last month, primarily driven by declining fuel prices and electricity bills, along with a higher price base in May of the previous year. Experts predict that the inflation rate will further decrease throughout June.

 

Wichanun Niwatjinda, deputy director-general of the Trade Policy and Strategy Office, expects inflation for June to either slow down further or contract, mainly due to decreasing energy prices, particularly fuel prices, which have seen a significant drop since May 2022. Furthermore, electricity bills are also on the decline, thanks to government support measures.

 

Factors such as a high price base in June 2022, government initiatives to reduce living costs, and price controls contribute to the likelihood of easing inflation this month. However, Wichanun also highlighted the need to monitor potential adverse factors, including weather fluctuations, a recovery in demand, and high production costs for items like liquefied petroleum gas, wages, and interest rates. Wichanun said…

 

“In the first quarter, inflation was 3.88% and it is expected to be slightly above 1% in the second quarter. For the third and fourth quarters, the average is projected to be less than 1% a month. This indicates a likely decrease in inflation throughout the year, with a clearer picture expected in June.”

 

He also mentioned the possibility of a downward adjustment to the central bank’s inflation target, which will be reconsidered next month. In line with economic conditions and falling energy prices, the Commerce Ministry recently revised its headline inflation outlook for this year from a range of 2-3% to 1.7-2.7%.

 

By Alex Morgan

Caption: Photo Courtesy of Istock

 

Full Story: https://thethaiger.com/hot-news/economy/inflation-plummets-to-21-month-low-as-fuel-and-electricity-prices-drop

 

-- © Copyright Thaiger 2023-06-07

 

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[hotchilli]

11 hours ago, snoop1130 said:

Inflation in Thailand reached its lowest point in 21 months last month,

So why does my normal weekly supply shopping run still cost more?

[dinsdale]

Smoke and mirrors.

 

[spidermike007]

Always false numbers. Same is happening in the US. Inflation is roaring, yet they make this stuff up and state silly numbers like 3.88%. They use staples that mean nothing to us. Never trust the government. Ever. 

[jacko45k]

I will get back to you when this months electricity bill arrives.

[bradiston]

2 hours ago, jacko45k said:

I will get back to you when this months electricity bill arrives.

In my condo, electricity cost just went up 25% from 6 to 7.5 THB per unit.

[Bangkok Barry]

4 hours ago, hotchilli said:

So why does my normal weekly supply shopping run still cost more?

Because inflation figures are a complete nonsense. The inflation figure is calculated by using a 'basket' of items, not everything as that is probably impossible. So if something has increased in price by 40% it won't be included if it is not one of the items included in the 'basket', but something that is in the 'basket' and has only increased by 2% is.

[dinsdale]

10 hours ago, bradiston said:

In my condo, electricity cost just went up 25% from 6 to 7.5 THB per unit.

Mine just went 5 to 7. 

[jacko45k]

18 hours ago, bradiston said:

In my condo, electricity cost just went up 25% from 6 to 7.5 THB per unit.

Ouch... but that is in line with price increases for direct customers... although I thought I heard there will be some subsidy for the next 3 months....(I saw the terms and it is the small consumers that get the benefits, my consumption is too high to see much).