PM Yingluck Orders Check On Consumer Goods, Food Prices

[webfact]

PM Yingluck orders check on consumer goods, food prices

BANGKOK, March 16 – Amid consumer outcries over rising food prices, Prime Minister Yingluck Shinawatra today convened an urgent economic meeting at the Commerce Ministry to check raw material prices, according to Commerce Minister Boonsong Teriyapirom.

Close monitoring is needed as low prices of agricultural produce received by farmers has led to a series of protests but goods prices at markets are high, the minister said. However, overall prices have fallen, fresh produce in particular.

National Economic and Social Development Board Secretary-General Arkhom Termpittayapaisith told the meeting that the Thai economy in January still felt the impact of last year's catastrophic flooding, but said it would improve in February because industrial production has resumed.

Inflation in the first two months of this year dropped in comparison with the fourth quarter last year, owing to the government’s measures to help low-income earners such as the commerce ministry's 'Blue Flag' campaign to sell consumer goods at low prices and free bus and train service for the public and the diesel fuel excise tax exemption.

However, the measure offering free rides for non-air-conditioned buses and third-class trains will expire in April and pegging diesel prices will end this month. In addition, the increase of the daily minimum wage to 300 baht in April may add pressure toward inflation, Mr Arkhom said.

Meawhile, Bank of Thailand (BoT) Governor Prasarn Trairatvorakul said that the major negative factor in this year’s inflation is rising oil prices and the daily minimum wage hike. Despite boosting purchasing power, the daily minimum wage rise will also cause burden on entrepreneurs in the short term if they cannot improve labour efficiency to cover the 40 per cent increased cost.

The BoT forecast that inflation from Jan 2012 to the third quarter would not accelerate and will stay within target although global oil prices may rise to US$140 per barrel.

The core inflation target for 2012 is between 0.5 and 3.0 per cent. Core inflation excludes volatile food and energy prices.

According to the survey, the BoT governor said that projected inflation in the next 6-12 months will be stable and under control, and that food prices are likely to drop.

As a result, the government believes it is unnecessary to adopt policies to contain inflation but should instead consider specific policies to help people affected by higher oil prices. (MCOT online news)

-- TNA 2012-03-16

[Asiantravel]

I think inflation is worse than anyone is letting on.

An easily monitored example is where I get my ground coffee for 250 g

this time last year exactly it was 95 baht, then it increased to 105 baht about six months ago

and now they just increased it to 115. So 10 baht increase every six months.

[AsiaCheese]

... and how was that with limits on water prices? In the condo building where I live, one shop sells bottled water (6 liters, Nestlé) for 70 baht, another (without price labels, you find out at the cash desk) for no less than 100 baht. My reference price is the supermarket a few 100 meters from here: 42 bath.

[Reasonableman]

All Bran 109->128 baht. No sh_t!!

[jonclark]

I think inflation is worse than anyone is letting on.

An easily monitored example is where I get my ground coffee for 250 g

this time last year exactly it was 95 baht, then it increased to 105 baht about six months ago

and now they just increased it to 115. So 10 baht increase every six months.

I totally agree - consumer inflation is skyrocketing. It will be an interesting (possibly unpleasant ) experience to see what happens when the 300 Baht minimum wage comes into effect.

[Reasonableman]

I think inflation is worse than anyone is letting on.

An easily monitored example is where I get my ground coffee for 250 g

this time last year exactly it was 95 baht, then it increased to 105 baht about six months ago

and now they just increased it to 115. So 10 baht increase every six months.

I totally agree - consumer inflation is skyrocketing. It will be an interesting (possibly unpleasant ) experience to see what happens when the 300 Baht minimum wage comes into effect.

Doesn't look to be happening anytime soon, going by all the signs.

[rubl]

More bad news. It seems today the president of the Thai Rice Pacers Association said that the retail price of Jasmine rice would go up by at least 10 Baht per 5 kilo pack. K. Somkiat said the main reason was higher costs of raw materials and fuel prices with wage increases possibly adding more.

I just bought a pack at the local mom&pop shop around the corner (in Bangkok)