Thai Inflation Rises For Fifth Month

[webfact]

Thai inflation rises for fifth month

BANGKOK: -- (AFP) - Thailand's inflation rose for the fifth straight month in February, showing that the country is recovering from the global economic crisis, the commerce ministry said.

The index rose 3.7 percent year-on-year due to food prices that increased 5.1 percent and non-food sector items that rose 7.7 percent, it said.

"The increase in inflation clearly reflects that the economy has recovered in both the agricultural and industrial sectors," said a ministry statement.

Average inflation in the first two months of this year stood at 3.9 percent, it said.

The ministry maintained its original target for inflation this year at between 3.0 percent to 3.5 percent.

-- ©Copyright AFP 2010-03-02

Published with written approval from AFP.

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[BLUEEYEDTHAI]

Oh yes ,such good news for the Thai people.

[HS Mauberley]

The index rose 3.7 percent year-on-year due to food prices that increased 5.1 percent and non-food sector items that rose 7.7 percent

How does that work? Food rose by 5.1% and everything else rose by 7.7%, giving an average of 3.7%. Am I missing something?

[MJP]

Please consider the effect of a reduction in supply. Excess capacity was slashed during the sudden downturn in 2008/2009.

[neil324]

Please consider the effect of a reduction in supply. Excess capacity was slashed during the sudden downturn in 2008/2009.

Was'nt that the reason used for 'deflation' quick slash rates.

Seems some pretty high fiqures to me. Rate rises?

[MJP]

Lot of factories closed. Lot of production slashed.

Yes, perhaps. Will make it difficult to keep the value of the Baht down.

Please consider the effect of a reduction in supply. Excess capacity was slashed during the sudden downturn in 2008/2009.

Was'nt that the reason used for 'deflation' quick slash rates.

Seems some pretty high fiqures to me. Rate rises?

[Jonathanpattaya]

I see an interest rate hike by the CBT which will further strengthen the Baht.

[TPI]

Oh yes ,such good news for the Thai people.

Have you noticed that the plates of things in the market have gotten smaller while the price remains the same?? Maybe it's a govt. plan to reduce obesity in Thailand, you know make the price of food beyond the reach of those "super fat working class peons" and force them to trim down by eating rice straw and the like??