Inflation in August falls to lowest for 14 months
The inflation rate in August dropped to a better than expected 14-month low of 3.8 per cent year on year due to reduced fuel prices and food costs, the Commerce Ministry said on Friday.
The consumer price index revealed inflation rose 5.5 per cent during the first eight months, compared to the same period last year. Inflation eased slightly in August prompting the Commerce Ministry to predict that inflation for the year would be between 4.5 and 4.95 per cent. "I strongly believe that inflation for the whole year will be less than 5 per cent," Karun Kittisataporn, permanent secretary of the ministry, said. He said the global price of oil is likely to drop gradually and that the consumer price index for the remaining months should be below 4 per cent. The price of fuel has been the main inflation trigger this year, accounting for 0.9 per cent of the total index. The price of other goods have also been affected by the rising oil price, as has the cost of transportation. The oil price dipped four times last month, resulting in a 1-per-cent drop in food and beverage prices. Karun said his main concern was the rising price of oil, which is beyond the ministry's control. However, it is a good sign the price of oil is showing signs of decreasing over the rest of the year. The price of other products should be under the control of the ministry and market mechanism. The ministry's campaign to sell low-cost goods each month around the country will help curb inflation, he said. The price of food and drink increased by 0.1 per cent last month, while the price of vegetables and sticky rice have risen from July. The cost of public transportation increased by 1.1 per cent or Bt0.3 per kilometre. Newspaper prices increasing by 6.2 per cent also affected the rising of inflation by 0.26 per cent. Meanwhile, core inflation increased 1.9 per cent year on year last month, and 0.1 per cent from July. Core inflation in the first eight months was 2.6 per cent compared to same period last year. The ministry also reported that the cost of production index increased by 6.6 per cent last month year on year, but fell 1.6 per cent from July. The index fell in three consecutive months because production costs from all industries dropped due to the appreciation of the baht.
Petchanet Pratruangkrai The Nation
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