Thai Inflation Grows Slowly In May

[webfact]

Thai inflation grows slowly in May

BANGKOK, June 2 - Thailand’s Consumer Price Index (CPI) grew at a slower pace last month to stay at 115.23, up 0.39 per cent from April, thanks to the slow goods price rise, according to the Commerce Ministry.

Inflation in May rose by 2.53 per cent year-on-year while inflation in the first five months this year climbed by 3.03 per cent compared to the same period last year, Permanent Secretary for Commerce Yanyong Phuangrach told a news briefing on Friday.

Overall, inflation rose in a better direction in accord with the country’s improved economic condition as production and consumption remained healthy.

This year’s overall CPI target was set within a range of 3.30-3.80 per cent year-on-year, influenced by the key risk factors- the global and domestic political situations, the global economy, natural disasters, fluctuation of the currency exchange and interest rates, all of which will impact the cost of production and the cost of living, Mr Yanyong announced.

The permanent secretary explained that the slow increase in the inflation rate was because the price rate of consumer products was stable and reduced.

However, the price index of food and beverages climbed by 1.41 per cent as hot weather resulted in less produce.

Meanwhile, the consumer price index in the other groups decreased by 0.28 per cent owing to falling retail oil prices in the country and the government’s measures to assist consumers affected by the high oil prices in earlier period. (MCOT online news)

-- TNA 2012-06-02

[noitom]

They are controlling it, managing it, measuring it, assuring not to worry about it. The Thais are sensational. The world should follow their lead.

[webfact]

Thai inflation rose 2.53% in May

BANGKOK, 2 June 2012 (NNT) – Thai consumer prices rose further in May while officials affirmed that the inflationary pressure looks set to ease in the near future.

Permanent Secretary for Commerce Yanyong Phuangrach said on Friday that Thailand’s Consumer Price Index (CPI) in May stood at 115.23, up 2.53 percent from the same month of last year and 0.39 percent from April.

The rise was induced by higher food and beverage prices and lower farm produce, which was caused by prolonged hot weather in the country, according to the Commerce Ministry’s data.

During the first 5 months of 2012, Thai CPI recorded an average increase of 3.03 percent.

Despite this, Mr. Yanyong said that, when compared with the current economic growth trend of Thailand, the latest CPI data is not of any worries as the overall situation is acceptable and shows stability.

In addition, the Core CPI in May stood at 108.15, up 1.95 percent year-on-year and 0.29 percent month-on-month. The country’s Core CPI during the months of January to May 2012 increased 2.46 percent on average.

The Permanent Secretary for Commerce stated that May inflation is actually representing an easing trend as produce prices have not risen significantly, when compared with the same period of last year.

He attributed the positive outlook to the sound and recovering conditions of the Thai economy, while maintaining this year’s inflation target at 3.3-3.8 percent.

-- TNA 2012-06-02

[xthAi76s]

What about this: "Rising Costs In Thailand: 4-Month Retail Price Freeze"

It must be helping somewhat.

[brianP]

Without controlling labor unions and welfare deadbeats and non industrial food industries, growth is encouraged. People are not harmed as much from natural weather extremes, and everybody loves Thai food!

[ttelise]

Without controlling labor unions and welfare deadbeats and non industrial food industries, growth is encouraged. People are not harmed as much from natural weather extremes, and everybody loves Thai food!

Not exactly sure what you are saying, but Thailand calculates CPI without inclusion of food or energy prices. Unfortunately, in countries like Thailand food and energy comprise a large percentage of the average wage earner's income. Prices on items such as electronics and TVs have come down everywhere, but how often does an average Thai buy a TV compared to buying and consuming food and energy.

Use of core calculation methodology has a tendency to understate real effect of rising prices on those individuals who are most sensitive to rising prices. US uses a substitution of goods theory for calculating CPI which is not much better (i.e., if price of fillet mignon goes up, they remove fillet from the basket of goods utilized to calculate CPI and replace it with sirloin under assumption consumers will buy sirloin instead of fillet). I think this is CPI manipulation also, but at least it includes food.

The net effect is that CPI is more of a political tool to promote economic agendas, QE 1&2 in US, and laude political parties in control than anything. Real CPI in US has beenaround 8 % in US since adoption of this new substiution method. I suspect real CPI in Thailand is also much higher.

Edited June 3, 2012 by ttelise