Nonthaburi, Director of the Office of the National Economic and Social Development Board (ONES) is confident that digital wallets will not increase the inflation rate for the whole year or make products more expensive. He believes that it will stimulate people’s purchasing power more. While the inflation rate in July 2024 increased by 0.83 percent, for a total of 7 months, Thai inflation has increased by 0.42 percent due to higher oil and rice prices.
Mr. Poonpong Naiyanapakorn, Director of the Office of Trade Policy and Strategy (OTPS), said that Thailand’s consumer price index in July 2024 increased by 0.83 percent compared to the same period last year. The main factor was the increase in fuel prices following the global oil price situation, along with the increase in food prices, especially processed food, fresh fruits, white rice, and glutinous rice. As for the prices of other goods and services, they did not have much impact on inflation. However, when compared to other countries, the latest data in Ju
ne 2024 showed that Thailand’s inflation rate increased by 0.62 percent, which is still in the group of countries with low inflation rates, ranking 5th among the 135 economies that announced figures and 2nd among the 9 ASEAN countries that announced figures (Brunei, Cambodia, Malaysia, Singapore, Indonesia, Philippines, Vietnam, and Laos).
The general inflation rate increased by 0.83 percent this month. The movement of prices of goods and services is as follows: Food and non-alcoholic beverage category increased by 1.27 percent from the increase in prices of important products, including the group of ready-to-eat food (ready-to-eat rice, rice with curry, breakfast, a la carte food), the group of fresh fruits (rambutan, durian, mango, banana, watermelon, guava), the group of rice, flour and flour products (glutinous rice, glutinous rice), the group of fresh vegetables (tomato, spring onion, ginger, pumpkin, cucumber), the group of eggs and dairy products (chicken eggs, fresh milk, soy milk), the group of non-
alcoholic beverages (instant coffee powder, coffee (hot/cold), sweet water), and the group of cooking ingredients (granulated sugar, instant coconut milk, coconut (dried/shredded fruit)). While the prices of many products decreased, such as pork, mackerel, sweet orange, kale, vegetable oil, lime, garlic, and grilled chicken, etc.
Other categories, excluding food and beverages, increased by 0.50 percent from the increase in prices of important products, especially fuels (gasohol, diesel, gasoline). However, there are still many important products whose prices have decreased, such as electricity bills, shampoos, body soaps, detergents, skin protection and care products, hair conditioners, men’s and women’s T-shirts, and men’s and women’s shirts, etc.
This resulted in the average consumer price index for the 7 months (January – July) of 2024, compared to the same period of 2023, increasing by 0.11 percent. The trend of the general inflation rate in August 2024 is expected to be similar to July 2024. The import
ant factors that may slow down the inflation rate are: 1. Household electricity costs are lower than the previous year due to the government’s cost of living reduction measures. 2. Pork prices remain lower than the previous year due to a large supply entering the market, causing prices to gradually recover. 3. Fresh vegetable prices tend to decrease after the official start of the rainy season. 4. The base price of Dubai crude oil in the previous year was high. In August 2023, the price was approximately 86.61 US dollars per barrel, compared to the latest average of 79.69 US dollars per barrel (as of July 30, 2024). For the factors that
However, the NESDB expects that the inflation rate will increase as follows: 1. Domestic diesel prices are set at a ceiling of no more than 33 baht per liter, which is higher than the same period last year. 2. Prices of goods and services in the tourism-related category have increased, especially airfares in line with the continued recovery of the tourism sector. 3. Fruit pri
ces have increased higher than the same period last year due to continued demand, especially durian and longan. The Ministry of Commerce still forecasts the general inflation rate in 2024 to be between 0.0 and 1.0 percent, which is in line with the current economic situation. If the situation changes significantly, it will be reviewed again.
In addition, the OIC is closely monitoring the reasons for the international war that has started to heat up again, which will cause fluctuations in oil prices in the world market and will cause inflation rates for the rest of the year, especially in the fourth quarter, to tend to increase. However, we will have to continue to monitor it. We also believe that the economic stimulus measures, especially purchasing power through the digital wallet project that will take place at the end of the year, should result in better purchasing power without affecting production costs. Therefore, products are unlikely to increase due to the digital wallet project, but it should have a
positive effect as department stores will offer even more discounts to the public. The Department of Internal Trade is already closely monitoring products to be in line with costs.
Source: Thai News Agency