Diesel, food price hikes push Thailand’s headline inflation by 0.95%
The Commerce Ministry expects inflation to continue rising in December, partly due to economic growth, higher fuel prices and increased spending after government handouts
Thailand’s headline inflation rose by 0.95% in November, driven by rising diesel prices and higher cost of food and beverages, the Trade Policy and Strategy Office (TPSO) reported on Wednesday.
Poonpong Naiyanapakorn, TPSO director-general, said that the consumer price index (CPI) for November stood at 108.47, compared to 107.45 in the same month last year, marking the highest inflation rate in three months.
He attributed the rise to increased diesel prices, and higher costs for food items, including fruit.
Poonpong also noted that the average headline inflation rate from January to November was 0.32% higher than the same period last year. Looking ahead, he said, the Commerce Ministry forecasts December’s headline inflation to rise by 0.3 to 1.3% with the median estimate at 0.8%.
The ministry expects the inflation rate to rise because of three main factors:
- Anticipated economic expansion
- Higher diesel prices compared to earlier in the year
- Increased consumer spending, boosted by the government’s 10,000-baht handouts
