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[webfact]

Thai inflation rises to 3.14 percent in March

BANGKOK, April 1, 2011 (AFP) - Thai inflation accelerated in March, the Commerce Ministry said Friday, stoking expectations of another interest rate hike later this month.

The consumer price index rose 3.14 percent year on year, compared with a 2.87 percent increase in February.

The central Bank of Thailand raised the official cost of borrowing to 2.5 percent in March, the fifth hike in eight months, blaming surging oil and commodity prices on increasing inflationary pressure.

Rate-setters are due to meet later this month and Siam Commercial Bank's macroeconomic analysis manager Pornthep Jubandhu told Dow Jones Newswires the central bank was likely to focus on price stability rather than growth.

The bank predicted rates to be raised to 2.75 percent at the April 20 meeting.

Food prices were 5.87 percent higher year-on-year, partly due to a sharp rise in the cost of fresh vegetables after heavy rains caused widespread flooding that destroyed crops in southern Thailand at the end of the month.

Core inflation, excluding the volatile food and energy sectors, rose 1.62 percent in March, compared to last year.

The Commerce Ministry maintained its inflation forecast for 2011, at between 3.2 percent and 3.7 percent.

-- (c) Copyright AFP 2011-04-01

[webfact]

March inflation rises 3.14% year-on-year

BANGKOK, April 1 – Thailand’s Consumer Price Index (CPI), inflation, stood at 100.49 or 3.14 per cent increase year-on-year, Yanyong Phuangrach permanent secretary of the Commerce Ministry said today.

The inflation rate is appropriate in line with the current economic conditions and is not as high as projected by several other agencies. It indicated stable growth of the Thai economy in accordance with government policies including measures to oversee the cost of living and the price of consumer goods.

The average consumer price index in the first quarter rose 3.01 per cent, compared to the same period last year. Compared to the previous month, the CPI in March rose 0.49 per cent with higher prices of fresh food and consumer goods including vegetables, eggs, dairy products, pork and uncooked chicken.

Meanwhile, the Core Consumer Price Index in March rose 1.62 per cent year-on-year, and 0.28 per cent, compared to the previous month.

Commerce Minister forecast that inflation rate in 2011 will hover around 3.2-3.7 per cent on the assumption that the Dubai crude oil price remains around US$78-88 per barrel, the baht stays around 28-33 baht against the US dollar and the government extends its measures to help reduce cost of living for low-income earners.

In the second quarter, the inflation rate is likely to be 3.45 per cent. In addition to the global oil prices, floods in Thailand’s southern provinces are also risk factors which can cause rising prices of farm and agricultural products including shrimp, palm and rubber.

Prices of construction materials are likely to increase due to high demand. The production cost of some goods such as fertilizers, steel and soybean oil, using imported raw materials, will increase in line with the raw material prices in the global market. Moreover, salary rise of government officials by five per cent will affect the inflation rate by 0.06 per cent.

The Commerce Ministry will meet manufacturers of four product categories, asking for price rises after the ministry’s measure to cap goods prices ended on March 31.

The manufacturers of soybean oil will be the first called upon for a meeting to review the manufacturing cost structure in the first week of April. (MCOT online news)

-- TNA 2011-04-01

[12DrinkMore]

My personal inflation rate, and, indeed all those Thais that I speak with, are experiencing an inflation rate higher than the official figure, due to those "volatile food and fuel prices". Hmm, in my experience once food producers are used to higher prices they do not willingly drop the prices again, and neither do the restaurants. Prices are always sticky on the downside.

However I am pleased to see the focus is on stability rather than growth, and the rising interest rate should support the THB, reducing the cost of fuel imports.

[Gambles]

My personal inflation rate, and, indeed all those Thais that I speak with, are experiencing an inflation rate higher than the official figure, due to those "volatile food and fuel prices". Hmm, in my experience once food producers are used to higher prices they do not willingly drop the prices again, and neither do the restaurants. Prices are always sticky on the downside.

However I am pleased to see the focus is on stability rather than growth, and the rising interest rate should support the THB, reducing the cost of fuel imports.

not sure that the Baht can rise as fast as the oil price right now.....

[jombom]

My personal inflation rate, and, indeed all those Thais that I speak with, are experiencing an inflation rate higher than the official figure, due to those "volatile food and fuel prices". Hmm, in my experience once food producers are used to higher prices they do not willingly drop the prices again, and neither do the restaurants. Prices are always sticky on the downside.

However I am pleased to see the focus is on stability rather than growth, and the rising interest rate should support the THB, reducing the cost of fuel imports.

Yes. Me also. Noticed size 1 eggs at the local market gone from 35 Bt to 40 Bt. About 14%.

Petrol has gone from 31 to 35 Bt per litre. About 14%.

Wow ---- your Thai friends have noticed.