Inflation up a bit last month

Inflation up a bit last month

Inflation accelerated in November mainly due to higher food and beverage prices, notably meat, poultry and fish, eggs and dairy products, vegetables and fruits.

The consumer price index based on 450 items rose by 1.92% from a year earlier, accelerating from October's 1.46% increase, according to Commerce Ministry figures released yesterday.

Prices of food and beverages last month rose by 3.85%. Meat, poultry and fish prices increased by 8.51%, while those of eggs and dairy products were up 6.98% and vegetables and fruits 5.45% from November last year.

The reading has declined since December last year when it hit 3.6%.

On a month-to-month basis, prices rose by 0.09% from October.

Core inflation, which excludes fresh food and fuel prices and is based on 312 products and services, rose by 0.85% year on year in November, within the Bank of Thailand's target range of 0.5% to 3%.

In the first 11 months of this year, inflation averaged 2.24%, with core inflation at 1.02%.

Urawee Ngowroongrueng, deputy commerce permanent secretary, said the ministry expects inflation to edge up in the short term as consumers are likely to have more spending power after the Bank of Thailand unexpectedly cut its policy rate by 25 basis points to 2.25% last week.

She said inflation this year will likely be in a manageable range of 2.2-2.3%.

Prayoth Benyasut, director of the ministry's Bureau of Trade and Economic Indices, expects Thailand's inflation to stay around 2-2.8% next year, assuming the economy grows by 3-5%, Dubai crude oil averages US$95-115 per barrel and foreign exchange moves in a range of 29-34 baht per dollar.

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