The Thai inflation index in November stood at 108.75, up 2.8 per cent year-on-year as the flood situation in the country has eased and fresh food prices began to drop, Permanent Secretary for Commerce Yanyong Puangrach told a press briefing Wednesday.
Inflation in November declined 0.21 per cent compared to October, mainly fuelled by higher prices of eggs, some consumer goods and construction materials.
Mr Yanyong also reported that the inflation rate in the first 11 months of this year increased by 3.4 per cent compared to the same period last year, driven by a 14.7 per cent rise in fuel prices, a 44.8 per cent growth in piped water prices, and a 1.2 per cent increase in electricity prices.
Meanwhile, the Core Consumer Price (CCP) Index in November increased by 1.1 per cent year-on-year and 0.02 per cent compared to October.
The Commerce Ministry forecast December inflation to stand at 3.1-3.4 per cent on average.
Based on the projection, the inflation in the last quarter of this year is likely to increase between 2.9 and 3.0 per cent while overall 2010 inflation will rise by 3.3 per cent as earlier forecast at 3.0-3.5 per cent.
The Bank of Thailand (BoT) on Wednesday raised the policy interest rate by 0.25 per cent from 1.75 to 2.00 per cent, effective immediately, BoT Assistant Governor Paiboon Kittisrikangwan said.
The decision was made by the Monetary Policy Committee.
It is less important to maintain the current extra-accommodative monetary policy stance when Thailand’s economy is expected to grow at 7-8 per cent this year and 3-5 percent next year, Mr Paiboon said.
As a result, the interest rate should be readjusted to a normal rate after the BoT kept it low for the past two years.
The Monetary Policy Committee raised the interest rate by 0.25 per cent at its last two meetings, in July and August, consecutively.
Thailand’s core inflation in November was 2.8 per cent and core inflation for the year 2010 overall is likely to stay at 3.4 per cent on average, and will tend to grow in the future. It will take a period of time, about four to eight quarters, until the outcomes of the rising interest rate can be seen. It is a signal that interest rate must return to the normal rate.
Regarding worries on increasing margins between the Thai and US interest rate contributing to capital inflow, Mr Paiboon said it is one of several factors but a main factor, leading to capital movement, is the real economic fundamentals which remain strong and which are likely to expand next year, causing capital inflow and rising stock prices followed by an increasing interest rate.
Thai fruit exports to FTA markets up 107 percent
China, Malaysia, Singapore, Indonesia, the Philippines, Hong Kong, Australia and Chile are top importers of Thai fruits, especially fresh durian, mangosteen, longan and mango. Thai exporters are able to benefit from FTA privileges.
BANGKOK (NNT) – Thailand’s fruit exports continue to increase, despite the sluggish global economy caused by the COVID-19 pandemic, with key trade partners being countries that have free trade agreements (FTAs) with the kingdom.
The Future of Asia: greener but with a public and private debt hangover
The COVID-19 pandemic has been a perfect storm, destroying jobs, worsening poverty and inequality, and creating a public and private debt problem—especially for countries and firms already in fragile financial health beforehand
50:50 campaign may not get immediate extension
BANGKOK (NNT) – The government’s 50:50 co-pay campaign expiring on 31st March may not be getting an immediate campaign extension. The Minister of Finance says campaign evaluation is needed to improve future campaigns.
The Minister of Finance Arkhom Termpittayapaisith today announced the government may not be able to reach a conclusion on the extension of the 50:50 co-pay campaign in time for the current 31st March campaign end date, as evaluations are needed to better improve the campaign.
Originally introduced last year, the 50:50 campaign is a financial aid campaign for people impacted by the COVID-19 pandemic, in which the government subsidizes up to half the price of purchases at participating stores, with a daily cap on the subsidy amount of 150 baht, and a 3,500 baht per person subsidy limit over the entire campaign.
The campaign has already been extended once, with the current end date set for 31st March.
The Finance Minister said that payout campaigns for the general public are still valid in this period, allowing time for the 50:50 campaign to be assessed, and to address reports of fraud at some participating stores.
The Fiscal Police Office Director General and the Ministry of Finance Spokesperson Kulaya Tantitemit, said today that a bigger quota could be offered in Phase 3 of the 50:50 campaign beyond the 15 million people enrolled in the first two phases, while existing participants will need to confirm their identity if they want to participate in Phase 3, without the need to fill out the registration form.
Mrs Kulaya said the campaign will still be funded by emergency loan credit allocated for pandemic compensation, which still has about 200 billion baht available as of today.
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