Food products push inflation up 0.35% in August

The Ministry of Commerce revealed the general inflation rate figure for August 2024 at 108.79, an increase of 0.35% due to higher prices of food products. It is expected that the general inflation rate for the whole year will be between 0.0-1.0%. Mr. Poonpong Naiyanapakorn, Director of the Office of Trade Policy and Strategy (OTPS), revealed that Thailand's Consumer Price Index or the general inflation rate in August 2024 was 108.79, an increase of 0.35%. The main factor was the increase in the prices of food products, especially fresh vegetables, fresh fruits, and ready-to-eat food such as ready-to-eat rice, rice with curry, and made-to-order food. Meanwhile, the prices of energy products, electricity, and gasohol decreased. However, when compared to other countries, Thailand's inflation rate in July 2024 increased by 0.83%, still being in the group of countries with low inflation rates, ranked 10th out of 128 economies that announced figures, and ranked 2nd lowest in ASEAN out of 8 countries that announce d figures (Cambodia, Malaysia, Indonesia, Singapore, Vietnam, Philippines, and Lao PDR). The consumer price index for August 2024 compared to August 2023 increased by 0.15%, following an increase in the food and non-alcoholic beverage category by 0.30%, adjusted upwards following the prices of prepared food, fresh fruit, white rice, and chicken eggs, while pork, limes, and electricity prices decreased from the previous month. Other categories other than food and beverages increased by 0.03%, mainly due to an increase in fuel prices. For the general inflation rate trend in September 2024, it is likely to increase from August 2024. The main factors that caused the inflation rate to increase include the domestic diesel price, which is set at a ceiling of no more than 33 baht per liter, which is higher than the same period last year. The impact of the flood caused the price of fresh vegetables and fruits to increase because some planting areas were damaged. However, it is expected to be a short-term impact. The geopolitical conflict situation may cause uncertainty in the price of important commodities, including increased shipping costs. While the main factors that caused the inflation rate to slow down include household electricity costs being lower than the previous year due to the government's cost of living reduction measures, the high base price of Dubai crude oil in the world market in the previous year, coupled with the current Dubai crude oil price trending to recover slowly or possibly decreasing due to the global economy trending to expand at a low level, product price reductions and competition in organizing marketing promotion activities by domestic wholesale and retail entrepreneurs, and trading through e-commerce channels, causing many products to continuously reduce their prices. 'The Ministry of Commerce still projects the general inflation rate in 2024 to be between 0.0 and 1.0 percent (the median is 0.5 percent), which is in line with the current economic situation. If the situation changes signi ficantly, it will be reviewed again. As for the first part of the digital wallet that will be paid in September, it will not affect the cost of goods, but at the same time, it will have a greater effect on purchasing power,' said Mr. Poonpong. Source: Thai News Agency