Consumer prices rose for the seventh straight month in October, driven mainly by higher fuel retail prices fuel and the vegetarian festival pulling up demand for certain fresh vegetables.
The Commerce Ministry said yesterday that the consumer price index, based on 450 products and services, edged up 0.34% year-on-year last month after increasing 0.38% in September, 0.29% in August, 1% in July, 0.38% in June and 0.46% in May.
Pimchanok Wonkorporn, deputy director-general of the Trade Policy and Strategy Bureau, said the rise was also attributable to higher tobacco and alcoholic beverage prices, which surged 13% year-on-year.
Cigarette prices, in particular, rose by 28.2% from October last year thanks to an excise tax hike effective earlier in the year.
On a monthly basis, prices increased 0.16% from September, mainly because of higher transport and communication prices, which rose in line with higher retail fuel, apparel and footwear prices.
Core inflation, which excludes food and energy prices, edged up 0.74% on an annual basis in October and 0.04% on a month-to-month basis. Headline inflation from January through October was 0.06%, while core inflation was 0.74% for the same period.
Of the 450 items tracked, 142 saw price increases, including onion, certain vegetables, coffee, house rent and oil for fuel. Prices of 96 items fell, while 212 items cost the same.
"The continued rise in consumer prices over the past 10 months clearly reflects a positive spending trend of consumers, who are increasingly confident in the economic recovery, propelled by the government's various economic stimulus measures and accelerated infrastructure investment, and close monitoring on the people's costs of living," Ms Pimchanok said.
She said authorities have found a slight rise in the price of black and white attire while the nation mourns, but not significant enough to affect inflation. The ministry has pledged to closely monitor the prices of these apparels to prevent any profiteering.
The Commerce Ministry is maintaining its 2016 inflation forecast of 0-1% based on expected economic growth of 2.8-3.8%, assuming Dubai crude oil is within US$35-45 a barrel, and a foreign exchange rate of 35-37 baht to the US dollar.
Thanavath Phonvichai, vice-president for research at the University of the Thai Chamber of Commerce, said the higher inflation reflects Thailand's gradual economic recovery and rallying purchasing power, but not big enough to push the Bank of Thailand to raise interest rate over the next 3-6 months.
The university expects inflation for the year to rise by 0.4%