Inflation rate eases to 3.3% in Thailand

[Admin]

Inflation rate eases to 3.3% in Thailand  
Bangkok Post: 2 Jul 2010
June inflation rate eases slightly to 3.3%

Inflation rose for a ninth straight month in June, fuelled by higher prices for fresh food and consumer goods. But the rate slowed from May, as the aftermath of political violence sapped demand.

The consumer price index rose by 3.3% last month from a year earlier after climbing 3.5% in May and 3% in April.

Food and beverage prices rose by 6.1% year-on-year, mainly driven by a sharp 33.3% rise for vegetables and fruit, as hot weather led to water shortages.

Yanyong Phuangrach, the permanent secretary to the Commerce Ministry, said the June increase was more modest because of retail prices of fuel oil and lower prices for white rice, milk and dairy products, and drinks.

More importantly, the government recently approved the extension of free public bus and rail travel and waived electricity bills for low-income earners for another six months until year-end.

Subsidies on cooking gas and natural gas for vehicles, which were scheduled to end next month, have also been extended for another six months.

For the first six months of the year, inflation averaged 3.5%, mainly due to a 26.7% increase in fuel prices, a 47.5% hike for tap water and a 19% rise for fruit and vegetables.

http://www2.bangkokpost.com/business/marketing/184507/june-inflation-rate-eases-slightly-to-3-3