Thai Commerce Ministry retains full-year inflation forecast at 0-1%

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INFLATION FORECAST

Ministry retains full-year inflation forecast at 0-1%

PETCHANET PRATRUANGKRAI
THE NATION 
 

BANGKOK: -- DESPITE a slight decline in the first eight months of the year, the Commerce Ministry has maintained its inflation projection for the whole year at zero to 1 per cent on expectations that the inflation rate will increase in the fourth quarter from higher oil prices.

 

The ministry reported that inflation in the first eight months of this year was slightly negative at minus 0.03 per cent, after August's Consumer Price Index (CPI) edged up 0.29 per cent year on year. It was the fifth consecutive month of positive inflation, this time from higher food prices, especially cooked food, and higher tobacco duties.

Month-on-month inflation was slightly negative, at minus 0.04 per cent, from lower prices of fuel and some goods.

The ministry's inflation projection for this year at zero to 1 per cent assumes price of Dubai crude oil to average US$35-$45 per barrel, higher than the previous forecast of $30-$40, but the baht's appreciation will offset a higher oil-import value. The baht will range between 35 and 37 to the US dollar, compared with the previous forecast of 36-38.

Gross domestic product will grow by 2.8-3.8 per cent.

"Following positive signs of a recovery in inflation, the ministry will retain the inflation target for this year. Despite higher global oil prices, the baht's appreciation will offset rising costs of fuel domestically," Somkiat Triratpan, inspector-general of the ministry and director of its Policies and Trade Strategies Bureau, said yesterday.

He said the expected slight increases in the CPI in the remaining months should benefit the economy and encourage more spending.

Last month, prices of foods and beverages rose 1.88 per cent on lower supplies during the dry season and high demand for some foods, while non-food-and-beverage prices decreased 0.59 per cent.

Core inflation, which excludes volatile food and fuel prices, firmed slightly in August to 0.79 per cent year on year and 0.07 per cent month on month. Average core inflation in the first eight months of the year was 0.74 per cent, which was in line with the Bank of Thailand's forecast of 0.5-3 per cent. A ministry survey during June and July found that more people were shopping online, mostly people aged 30-39 years who live in Bangkok and nearby provinces.

The poll of 4,653 respondents found that the top reason for shopping online was convenience. They also liked the many choices it offered.

The average value of online shoppers' transactions was Bt501-Bt1,000. About 93 per cent of online shoppers buy from domestic companies. However, online shoppers still worry about goods not living up to their advertised specifications, delivery delays, damaged goods, not receiving their purchases, and lost contact with sellers.
 

Source: http://www.nationmultimedia.com/business/Ministry-retains-full-year-inflation-forecast-at-0-30294305.html

 

-- © Copyright The Nation 2016-09-02

[snarkfloggletroll]

might as well go to the nation news form now huh. 

 

nice numbers. still too high. 

ill wait for the fire sales. 

 

[maoro2013]

Core inflation excludes fuel and food.

 

Almost unbelievable really.

[elgordo38]

12 minutes ago, maoro2013 said:

Core inflation excludes fuel and food.

 

Almost unbelievable really.

Yes it is truly unbelievable. Send this bozo out with me when I go shopping I will prove him wrong. What a bunch of fuddle duddle. A good example is my recent electric bill. 

[Winniedapu]

9 minutes ago, elgordo38 said:

Yes it is truly unbelievable. Send this bozo out with me when I go shopping I will prove him wrong. What a bunch of fuddle duddle. A good example is my recent electric bill. 

 

Yes, mine too. But wait! I see your mistake.

 

You took them seriously didn't you? C'mon, be honest, you did, didn't you?

 

Winnie

Edited September 2, 2016 by Winniedapu

[elgordo38]

Just now, Winniedapu said:

 

Yes, mine too. But wait! I see your mistake.

 

You took them seriously didn't you? C'mon, be honest, you did, didn't you?

 

Winnie

Guilty what can I say. My new mantra. Do not take the Thai government so seriously. 

Just now, Winniedapu said:

 

Yes, mine too. But wait! I see your mistake.

 

You took them seriously didn't you? C'mon, be honest, you did, didn't you?

 

Winnie

 

[chainarong]

Stagnated to a stall.................................

[tomacht8]

Everyone for themselves.
If you are alone and must drive a lot, which that super gasoline prices, brillant.
If you feed a large famliy then it is more expensive than 0 -1% inflation.