Inflation Hits 12-Month High

[Flashermac]

Thailand's headline inflation rate accelerated to a 14-month high in May on higher food and energy prices, government data showed on Monday, posing an additional headache for policymakers facing a cooling economy and fears of growing public unrest.

 

The headline consumer price index rose 2.62 per cent in May from a year earlier, the Commerce Ministry said. That compared with the median forecast in a Reuters poll for a 2.59 percent rise and followed a 2.45 per cent increase in April.

 

Analysts said the central bank was likely to stand pat at its next policy review on June 18 as it weighs the dilemma of rising inflation and a slowing economy. The new military government faces the task of reviving an economy that shrank in the first quarter after months of political unrest.

 

The core inflation rate, which strips out fresh food and energy prices, quickened to 1.75 per cent year-on-year in May, from 1.66 per cent in April and against 1.70 percent in the poll. That was still well within the Bank of Thailand’s target range of 0.5-3.0 per cent, which guides monetary policy.

 

 

http://www.nationmultimedia.com/business/Inflation-hits-12-month-high-30235231.html

[Flashermac]

I couldn't help notice that from around the beginning of this year the servings of food in the university canteen are about 20% smaller. And last year I could have a plate of phat Thai in the market for 25 baht. Now it costs 40 baht and is smaller. I wonder how Thais making the 300 baht/day minimum are getting along.

 

p.s. Several Issan rice farmer taxi drivers have told me the farmers aren't getting any more money. It's the middle men who are responsible for the price rises.

[huumlaar]

middle men = rice mills = those who didn't get the money