Thai Inflation Hits 3.3 Percent In August

Thai inflation hits 3.3 percent in August

BANGKOK (AFP) - Thailand said Wednesday that inflation hit 3.3 percent in August -- the 11th straight monthly rise -- as the kingdom's economy recovers from the global downturn.

The figure also showed consumer prices lifted 0.23 percent from July, when the rate stood at 3.4 percent year on year.

Inflation so far in 2010 stands at an average of 3.5 percent, said commerce ministry permanent secretary Yanyong Phuangrach, who was confident of an average 2010 rate of 3.4 percent.

This would lie within the ministry's earlier projections of 3.0-3.5 percent.

"This reflects that the Thai economy is stable and expanding with constant consumer confidence," he said.

The increase in August was driven by rises in the food and beverage sector, where prices were up 7.5 percent year-on-year, Yanyong said.

August's core inflation, which excludes volatile food and energy prices, rose 1.2 percent from the previous year. Average core inflation for the first eight months of this year was 0.8 percent.

The economy has remained relatively resilient following two months of mass opposition protests, which brought parts of Bangkok to a standstill and sparked clashes that left 91 people dead and ended with an army crackdown in May.

Official figures released last month showed the economy expanded 9.1 percent in the second quarter of 2010 from a year earlier. For the six months through June, gross domestic product grew 10.6 percent.

In July the Bank of Thailand upgraded its economic growth projection for 2010 to between 6.5 and 7.5 percent.

The benchmark interest rates was raised 25 basis points to 1.75 percent last month following a quarter-point hike in July -- the first in almost two years.

-- (c) Copyright AFP 2010-09-01