LPG,expressway hikes won't hit inflation

The government's plan to raise the liquefied petroleum gas (LPG) price for households and expressway tolls would not cause inflation to rise significantly, Thanawat Polvichai, director of the Economic and Business Forecasting Centre at the he University of the Thai Chamber of Commerce, said on Sunday.

Mr Thanawat said the government's plan to increase the LGP price for cooking by 0.50 baht per kilogramme per month, or by 3%, would have little impact on Thailand's inflation.

The government proposes to raise the price of LPG used for cooking by 37% to 24.82 baht/kg by August 2014 from 18.13 baht/kg last month.

Mr Thanawat said the plan to raise the expressway tolls by 10% would only affect some motorists, not everyone. 

The increases of the LPG price for households and expressway toll charges would only account for 0.2% to 0.3% of the inflation, he said.

The low inflation would likely pick up momentum in the fourth quarter of this year as the economy should continue recovering, he added.

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