Thailand has made great strides in controlling its inflation rate, making it a shining star amongst Asian countries. According to Poonpong Naiyanapakorn, director of the Office of Trade Policy and Strategy on the Ministry of Commerce, inflation in Thailand is anticipated to stay within the low range of 1% to 2% this 12 months.
Thailand’s success in keeping inflation low can also be a part of the worldwide trend of lowering overall inflation. Not only that, the Consumer Price Index (CPI) for July was 107.82 in comparison with 107.41 in the identical month last 12 months. This represents a rise of only 0.38% 12 months on 12 months.
The secret of this achievement is the decline in food prices, amongst others. pork, which has been declining for 3 months in a row, and the decline in energy prices, which has continued for five months in a row. Thanks to those smart measures, Thailand was capable of manage inflation efficiently while ensuring that prices were kept at appropriate levels.
This is clearly excellent news for the Thai economy and in addition shows its ability to adapt to global changes. In a changing world, Thailand has emerged as a robust player in maintaining economic and price balance, which can’t be underestimated.
Looking ahead, CPI inflation may change barely in August. This will result from a rise in the costs of some food because of the consequences of drought, with a simultaneous probable increase in energy prices.
There were some noticeable price movements earlier in July. Prices of food and non-alcoholic beverages increased by a median of 1.49%. Every 12 months.
Meanwhile, prices of agricultural products similar to eggs, rambutan, vegetables, limes, ginger and tomatoes continued to rise because of unsatisfactory harvests. Poonpong reveals that the explanation for low crop yields is climate change.
But the change is not just about food. Prices of non-food items, including: electrical equipment, clothing and smartphones, decreased by 0.38% in comparison with the identical period last 12 months. Meanwhile, gasoline prices, public transportation fees and private services have all trended upward over the identical period.
Poonpong explained that the core inflation rate, which excludes fresh food and energy, increased by 0.86 percent year-on-year. In the primary seven months of this 12 months, the inflation rate increased by roughly 2.19%. in comparison with the identical period last 12 months and is throughout the range set by the Fiscal Policy Office.
But it is not just numbers that reflect change. The consumer confidence index showed a downward trend, falling from 56.1 in June to 53.3 in July. This is the eighth consecutive month of decline because of political uncertainty and rising oil and gasoline prices.
Despite the challenges, Thais’ faith within the strength of the country’s economy stays intact. This is because of the continuing economic recovery and the tourism industry, which is optimistic. Overall, average headline inflation is anticipated to stay low at 0.36% within the second half of 2023.
Source: thaipbsworld.com
