Thailand’s inflation for April up 2.89% year on year

Driven by oil and food price increases, Thailand’s inflation rate for the month of April increased by 2.89% compared to the same period last year, according to Nantapong Chiralerspong, director general of the Trade Policy and Strategy Office (TPSO).

He said today that the war in the Middle East, leading to the blockade of the Strait of Hormuz, has caused global oil prices to increase substantially, affecting public transport and driving up the prices of food and services.

He maintains, however, that Thailand’s inflation rate is still low compared to other countries, noting that inflation in March dropped by 0.08%, giving Thailand the second lowest inflation rate among other ASEAN nations. Among 140 economies, Thailand has the ninth lowest inflation rate.

Price inflation for non-food and non-drink categories for April increased by 4.14%, due to increases in public transport fares, house rental fees and cleaning service charges.

In the food and non-alcoholic drinks categories, inflation increased by 0.98% due to price increases of several goods, such ready-made food, fresh vegetables, eggs, rice, chicken, instant coffee, drinking water, fish and various other marine species.

The consumer price index for January-April this year increased by 0.32% compared to the same period last year, with the likelihood that inflation for May will continue to rise in relation to oil price rises.

Inflation is, however, expected to slow in the second half of the year, after the government has rolled out the “Thai Chuay Thai” (Thais Help Thais) scheme, which will see a cut in electricity prices.