The Commerce Ministry is keeping a close watch on prices in 18 categories in the first quarter, with costs nudging up for animal feed raw materials, the minimum wage is adjusted, and transport costs rise as a result of the Red Sea attacks.
According to Wattanasak Sur-iam, director-general of the Internal Trade Department, the 18 categories being monitored are: instant noodles; fresh food; canned food; bagged rice; seasoning sauce; vegetable oil; carbonated drinks; milk and dairy products; electrical appliances; laundry products; fertilisers; insecticides; pet food; iron; cement; paper; medicine and medical services, and services through retail and wholesale channels.
The ministry is still asking for cooperation from the private sector to help maintain their product prices, in alignment with ministry policy, he said.
Following discussions with business operators, most of them understand consumer purchasing power has not fully recovered, said Mr Wattanasak.
Most operators are opting to stimulate consumption rather than increase prices, believing the latter would negatively impact their sales.
"The department is monitoring prices, especially for animal feed raw materials such as soybeans and wheat, whose prices remain high, as well as tapioca production, which is likely to decrease because of anticipated drought," he said.
"If prices of those products rise significantly, it will affect the livestock business."
Mr Wattanasak said the department is also observing the wage uptick and freight rates following the Red Sea attacks by Houthi rebels.
The department asked the Thai National Shippers' Council and shipping companies to coordinate and provide advance notice of ship freight rates.
If a rate adjustment is needed based on rerouting of shipping vessels, the department will notify business operators in advance, allowing them to plan their production costs, he said.
Mr Wattanasak said Commerce Minister Phumtham Wechayachai instructed the department to maintain a price balance between agricultural producers and consumers, particularly concerning pork prices.
Pork prices are expected to rise around the Chinese New Year as demand grows, he said.
Mr Wattanasak pledged the department will continue to monitor retail pork price to ensure they remain at an appropriate level.
In a separate development, Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office, said yesterday Thailand's inflation trend this year should slow for the second consecutive year because of easing supply pressures.
Coupled with government measures to reduce the cost of living, the inflation rate for this year is projected at -0.3 to 1.7%, with an average of 0.7%, said Mr Poonpong.
The inflation rate was 1.23% in 2023.