Price hike strikes again: Inflation on a ten-month hot streak
Inflation in January has surged to 1.32%, continuing a relentless ten-month climb, with fuel, food, and beverage costs driving the increase.
Poonpong Naiyanapakorn, Trade Policy and Strategy Office (TPSO) chief, disclosed that the consumer price index has jumped by 1.32% compared to the same time last year. It’s the second consecutive month where inflation has breached the 1% mark.
A spike in fuel prices can be pinned on last year’s low base. Meanwhile, food and beverage costs have also climbed, with fresh fruits, cooking essentials, and non-alcoholic drinks all taking a hit.
Outside the food and drink aisle, prices in other areas have risen by 1% year-on-year, thanks largely to fuel costs. Electricity bills, housing rents, and airfares have all seen noticeable hikes, adding further pressure.
Other goods and services seem to have had little effect on the overall inflation scene.
When we strip away fresh food and energy, core inflation rose by 0.83% year-on-year in January, a slight uptick from December’s 0.79%.
Poonpong hinted that February’s inflation might mirror January’s levels, especially with domestic diesel prices still pegged at 33 baht per litre, higher than this time last year.
The bounce-back of the tourism sector has added to the price hike for related goods and services, particularly seen in airfares.
Crop prices remain stubbornly high, thanks to production still grappling with the aftermath of a prolonged drought, hitting coconuts particularly hard, according to TPSO reports.
“February’s inflation is likely to remain over 1%, with the first quarter’s overall inflation projected to rise by 1.1% to 1.2%.”
Poonpong also flagged some positives that could temper inflation, like the government’s efforts to slash living costs through reduced electricity bills and stabilising liquefied petroleum gas prices.
As for fresh vegetables, which previously skyrocketed due to natural disasters, prices are easing as improved weather blesses us with better agricultural yields and market availability.
Mainstream businesses are hopping on board with marketing campaigns in line with government stimulus efforts.
TPSO has revamped the inflation calculation basket, bumping up the items from 430 to 464, to reflect modern consumer habits based on the 2019 base year.
Out go monthly newspaper and magazine subscriptions, making way for new additions such as salmon, avocado, fermented fish sauce, electrolyte drinks, salad greens, smartwatches, electric chargers, dashboard cameras, and car window film. And keep your eyes peeled for air purifiers making the list soon, according to TPSO insiders.
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