Inflation Hits 1.32% in January, Fueled by Energy and Food Costs

[snoop1130]

File photo for reference only

 

In January, inflation surged to 1.32%, marking a steady increase for the tenth consecutive month. Rising fuel, food, and beverage prices are major contributors to this trend, as reported by Poonpong Naiyanapakorn, head of the Trade Policy and Strategy Office (TPSO).

 

The consumer price index has climbed by 1.32% compared to January last year, making it the second month in a row that inflation has topped 1%. This rise is largely due to increased fuel prices, which are influenced by a low base comparison from the previous year. Additionally, the costs of fresh fruits, essential cooking items, and non-alcoholic drinks have also surged.

 

Besides food and drinks, other areas saw a 1% price increase year-on-year, primarily driven by fuel costs. Electricity bills, housing rents, and airfare have notably risen, intensifying the financial strain on consumers.

 

Excluding fresh food and energy, core inflation grew by 0.83% year-on-year in January, slightly up from December's 0.79%.

 

 

Poonpong suggested that February might see similar inflation rates, given domestic diesel prices are still high at 33 baht per litre compared to last year. The rebounding tourism sector has further elevated prices, particularly in air travel.

 

Crop prices, especially for coconuts, remain high as recovery efforts from a prolonged drought continue. "February’s inflation is expected to stay above 1%, with first-quarter inflation projected between 1.1% to 1.2%,” Poonpong noted.

 

However, the government is taking measures to reduce inflation, such as cutting electricity bills and stabilizing liquefied petroleum gas prices. Improved weather is also helping bring down previously high fresh vegetable prices by boosting agricultural yields.

 

To reflect modern consumer habits, TPSO has updated the inflation calculation by expanding the basket from 430 to 464 items, based on 2019 data. The revised list excludes monthly newspaper and magazine subscriptions and now includes salmon, avocado, electrolyte drinks, and tech items like smartwatches and electric chargers. Air purifiers are expected to join the list soon, according to TPSO insiders.

 

-- 2025-02-07

 

 

[Tropicalevo]

And Big Businesses are recommending to the government that VAT is increased from 7% to 15%.

[atpeace]

This is news? Inflation is low and expected to remain low.  1.32% vs almost 3% in the USA for example. Funny article...

[GammaGlobulin]

Looks OK, to me.

 

Thailand: Inflation rate from 2007 to 2029:....

 

 

Why not just buy products and services for which no inflationary price rise has taken place.

Such as eggs, for example.

 

Eggs seem cheap.

 

Inflation is a tax on the poor, goes the refrain...

 

[CallumWK]

2 minutes ago, GammaGlobulin said:

Looks OK, to me.

 

Thailand: Inflation rate from 2007 to 2029:....

 

 

Why not just buy products and services for which no inflationary price rise has taken place.

Such as eggs, for example.

 

Eggs seem cheap.

 

Inflation is a tax on the poor, goes the refrain...

 

 

That is great that you already know inflation rate 4 the next 4 years. That is sorted then.

Anyway, I see something very different from a 1.22% inflation in the supermarkets