Inflation eased in February as costs dropped for fresh poultry and aquatic animals, eggs, processed vegetables, seasonings, condiments and fresh fruits.
The Commerce Ministry reported yesterday that inflation based on the consumer price index (CPI) eased to 0.42% in February after a 0.68% reading in January.
The rise was driven largely by the non-food sector, whose prices rose 0.74% from the same month last year, driven by tobacco, alcoholic drinks, housing, furnishings and education.
The prices of overall food and non-alcoholic drinks fell by 0.16% from February last year.
On a monthly basis, prices contracted 0.23% from January, mainly due to lower fresh food and retail oil prices as the baht strengthened.
For the first two months of the year, headline inflation was 0.56%.
Core CPI, which excludes raw food and energy prices, rose 0.63% year-on-year in February and 0.07% month-to-month from January. For the past two months, core inflation averaged 0.61%.
According to Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office, of the 422 products and service items used to gauge the inflation rate, 105 of them, including paddy rice and milled rice, were found to have experienced price hikes in February.
No price changes were registered for 189 items, while 128 items saw prices drop.
Ms Pimchanok said annual inflation is expected at 0.6% for the first quarter.
The Commerce Ministry is maintaining its inflation forecast of 0.7-1.7% for the entire year, though the overall economy is improving and the April minimum wage hike will raise consumer prices.
The cabinet in late January endorsed a daily minimum wage hike of of 5-22 baht from April 1. The highest increases will occur in Chon Buri, Phuket and Rayong.
Industries to be affected the most by the wage hike include food/drinks, tanning, office supplies and basic metal products. Those most affected in the service sector will be construction, wholesale/retail, car/motorcycle repair, hotels and food services.