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Fuel, Flooding Push Thailand Inflation Rate to 2.4% in Oct.

Prices for fresh vegetables have pushed up inflation. (Photo: Bangkok Herald)
Prices for fresh vegetables have pushed up inflation. (Photo: Bangkok Herald)

Fuel prices and severe floods pushed inflation to 2.38 percent in Thailand last month.

The Finance Ministry said headline inflation jumped from 1.68 percent in September due to the continuing rise in fuel prices and certain grocery items, particularly fresh vegetables and eggs.

In the government’s basket of 430 products and services, 226 saw price increases. Prices for 71 items remained unchanged, while the other 133 items saw a decrease in price.

Thailand’s average inflation rate since January increased by 0.99%.

Ronnarong Phoolpipat, director-general for the Trade Policy and Strategy Office, the current inflation rate is not considered high when compared to the 5.4 percent rate of the U.S., 2.9 percent in the UK, and 2.6 percent in Vietnam.

The TPSO expects the country’s inflation rate to continue to increase over the remaining months of this year.

The office anticipates that the government’s action in capping the retail diesel price at 30 baht per liter, along with other aid measures for the logistics sector, will help prevent excessive inflation rates.

The TPSO is expecting the prices of fresh groceries to begin decreasing as the flood situation improves, while other seasonal produce will start replacing these short-supplied ingredients in the market.

The TPSO projects Thailand’s overall inflation rate this year to stay within the margin of 0.8-1.2 percent.