Thai inflation rises for first time in 2009: govt

Thai inflation rises for first time in 2009: govt
14 mins ago

Inflation was up 0.4 percent year-on-year compared with a 1.0 percent fall in September, owing to rises in prices in the food and beverage sector, said the ministry's permanent secretary Yanyong Phuangrach.

"It was the first rise following nine months of contraction," he said.

In the first ten months of 2009 overall, the ministry said Thai inflation dropped 1.5 percent, mainly from a fall in oil prices.

But consumer prices in the fourth quarter of the year are expected to rise 1.5 percent, lifting the total inflation for 2009 to between minus 1.0 percent and 1.0 percent.

The ministry projects inflation in 2010 to rise between 3.0 and 3.5 percent.

The core consumer price index, which excludes volatile energy and food costs, slipped by 0.1 percent in October from a year earlier.

uk.news.yahoo.com

perfect, recession with inflation, we are back to 2007 :p

Thailand not in deflation
Dec 1, 2009

BANGKOK - THAILAND is no longer in a state of deflation after consumer prices rose for the second consecutive month in November, the commerce ministry said on Tuesday.

Consumer prices rose 1.9 per cent year-on-year in November, said Yanyong Phuangrach, the ministry's permanent secretary.

Food prices climbed 0.6 per cent, due particularly to an increase in rice and rice products, meat and fish, while non-food sectors such as transportation and communication rose 4.2 per cent.

'Thailand has gone out of deflation after prices rose for the last two months. I expect inflation for 2009 to be at minus 0.8 per cent, which is still in line with expectations,' Mr Yanyong said.

Inflation rose by 0.3 per cent compared to October thanks to higher oil and food prices, but average prices for the first eleven months of this year still fell 1.2 per cent, he added.

'Inflation is gradually returning to normal and will boost the employment rate and increase public confidence in their income, resulting in more spending,' said Mr Yanyong. -- AFP

straitstimes.com

Thailand is a very good country. As you mention that there is inflation rate is just 0.6 percent. In other world countries there very high rate of inflation. The inflation rate is increase in Thailand is reason of increase in other countries. i am finance student i think this is great information for me
Thanks

By what deflation measure are they working?

As in - banks not lending money & economy in decline, or, as in - prices increasing slightly.

As BF mentioned to be in an increasing price cycle, within a recession, is awful.

Does anybody actually believe the official figures ? A plate of noodles that used to be 15 baht two or three years ago is now 30 baht. Petrol has tripled in price. Houses have gone up 100%.

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Originally Posted by Begbie

Does anybody actually believe the official figures ?

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it still costs the same with govt credit card or expense account - so inflation must be 0% :D

the interesting thing is we might be going through another supply shock, thanks to oil again, and commodities. I am not sure if we are going to survive that one though,

we need new inventions,

Thailand’s Inflation Rate Climbs to 14-Month High
Suttinee Yuvejwattana
With assistance from Michael Munoz in Hong Kong. Editors: Stephanie Phang, Shanthy Nambiar

Jan. 4 (Bloomberg) -- Thailand’s inflation accelerated to a 14-month high amid rising food and commodity prices, adding to signs the nation is emerging from its yearlong recession.

“The continued rise in prices is a good sign that the economy has returned to normal,” Permanent Secretary for Commerce Yanyong Phuangrach told reporters outside Bangkok.

“Confidence has improved, and the cost of living isn’t that high. This will help spur consumption.”

Thailand’s consumer prices fell in the nine months through September as the global slowdown pushed the Southeast Asian nation into a recession.

Bank of Thailand Deputy Governor Bandid Nijathaworn said Dec. 25 the central bank will consider exiting monetary stimulus when the economy recovers as it seeks to balance between spurring growth and taming inflation.

“We will continue to see accelerating inflation early this year,” Pimonwan Mahujchariyawong, an economist at Kasikorn Research Co. in Bangkok, said before the report.

“But economic recovery remains fragile, so we don’t think the central bank will make any move until the middle of the year.”

Oil Fluctuations

The central bank kept its benchmark interest rate unchanged at a five-year low of 1.25 percent for a fifth straight meeting last month after cutting borrowing costs by a total of 2.5 percentage points from December 2008 to April last year.

“The rate is expected to be unchanged in the first quarter,” Yanyong said.

“When the economic recovery is sustained, the rate can be adjusted accordingly.”

Inflation may accelerate to between 3 percent and 4 percent in the first quarter, the Bank of Thailand said Dec. 25.

The increase will be temporary as it’s mainly due to oil-price fluctuations, and doesn’t reflect “price pressure” from rising demand, the central bank said.

The Thai Cabinet last month approved the central bank’s 2010 inflation target of between 0.5 percent and 3 percent, unchanged from last year’s goal.

The target is based on an average of core inflation, excluding fresh food and fuel prices.

“There is no inflationary pressure now,” Bank of Thailand Deputy Governor Atchana Waiquamdee told reporters after the inflation release today.

“Rising oil prices won’t cause the inflation to exceed our target this year.”

Thailand’s core inflation index rose 0.2 percent last month from a year earlier, the Commerce Ministry said.

The median forecast in a Bloomberg survey of nine economists was for a 0.3 percent increase.

The central bank last month forecast that core inflation will accelerate to as much as 2 percent in the first half of this year after a government subsidy program for low-income earners expires.

businessweek.com

Quote:

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Originally Posted by Mid

“The continued rise in prices is a good sign that the economy has returned to normal,” Permanent Secretary for Commerce Yanyong Phuangrach told reporters outside Bangkok.

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Firstly, the Thai economy has not returned to normal, it is recovering.

Any rise in prices during a recession with the highish unemployment Thailand now has is known as stagflation, this is not a good situation to be in.

Who remembers the 1970's?

Quote:

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Originally Posted by Butterfly

the interesting thing is we might be going through another supply shock, thanks to oil again, and commodities. I am not sure if we are going to survive that one though,

we need new inventions,

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Gadgetry. Mindless consumption. Make-believe wealth and allowances. Kool-Aid drinkers.....