Higher Cost of Living Continues As Inflation Rises
Tivarati News -- Fri 2 May 2008 20:58:11
Thai authority warned Thai consumers to be prepared for a higher cost of living since inflation would continue surging beyond the 6.2-per-cent in a few months due to soaring oil prices.
"High inflation will hurt the entire economy, but we cannot control external factors such as oil prices," Commerce Ministry permanent secretary Siripol Yodmuangcharoen said yesterday. (Report by The Nation)
The inflation rate in April was the highest in 23 months. It peaked at 20 per cent in 1973 during the world oil shock.
Industry Ministry permanent secretary Chakramon Phasukavanich said Business operators were facing higher production and logistics costs and might consider increasing wages.
"The easiest solution is to increase product prices, cut production costs or reduce product quality," he said.
Oil prices account for 9.9-per-cent weight in calculating inflation in Thailand. They drive operating costs up and force operators to raise product prices.
Public transport is another sector that is directly hit by the oil crisis.
On May 16, Transport Ministry committees will decide on an approval to increase bus and ferry fares.
Siripol said the government tried to help consumers by selling rice and pork at special prices and maintaining stringent rules on 60 items on the price control list, particularly milk.
The Commerce Ministry has recently raised its inflation forecast from 3-3.5 per cent to 5-5.5 per cent. The new rate was based on an average Dubai oil price of $100-105 per barrel, up from $85 per barrel.