June 7, 2023
BANGKOK – It marked the lowest reading since August 2021, as prices of non-food products eased due to the sharp reduction in fuel costs.
But the data released by the Commerce Ministry on Tuesday also showed the fifth successive month of a slowdown in growth, mainly because of the falling prices of energy and foods.
Wichanun Niwatjinda, deputy director of the Trade Policy and Strategy Office (TPSO), said the consumer price index (CPI) for May was 107.19, up 0.53% year on year. The CPI in May last year was 106.62.
Wichanun said headline inflation had continued to slow for five consecutive months.
He said core inflation in May, after deducting the prices of fresh foods and energy, rose 1.55%, down from 1.66% in April.
Wichanun said the major factors that had contributed to the drop in headline inflation were the falling prices of energy and the reduction of power bills due to the government’s subsidy package, as well as the continued fall in food prices. He added that in comparison, the inflation rate in May last year was high.
Wichanun said April’s figures showed Thailand had among the lowest inflation rates in the world, adding that the kingdom’s inflation rate in April was far lower than Asean members Laos, Philippines, Singapore, Indonesia, Malaysia and Vietnam.
He explained that the 0.53% inflation rate in May was influenced by the 3.99% rate hike of prices of certain categories of foods and non-alcoholic drinks.
Those with rising prices in May included vegetables and fruits like limes, scallions, eggplants, watermelons, rambutans, and eggs. Wichanun said the prices of non-alcoholic drinks, including coffee, tea and soda drinks, also rose mainly because the new school year had started.
Wichanun said the prices of goods other than foods and drinks fell by 1.83% due to lower diesel and petrol prices.
The TPSO expects the inflation rate in June to continue to fall year on year because of declining prices of energy, while the inflation rate in June last year was high.
The Commerce Ministry maintains its headline inflation rate of 1.7-2.7% for this year, Wichanun added.