March 4, 2008
BANGKOK - The inflation rate jumped to a 19-month high of 5.4 percent in February due to surging prices for energy and food, according Commerce Ministry.
The figure was higher than the market's forecast of 3.5 percent and marked a sharp rise from January's inflation rate of 4.3 percent, according to AFP.
"Inflation in February increased due mainly to rising oil prices. High oil prices continue to affect prices of other consumer goods, including meat and vegetables," said Kanang Duangmanee, researcher at Kasikorn Research Center.
Overall food and beverage prices rose 7.9 percent year-on-year. Meat prices soared 25.0 percent while fruit and vegetable prices rose 15.1 percent. Prices of eggs and dairy products increased 10.7 percent.
Prices for pork and cooking oil rose especially fast. Pork prices jumped 23.9 percent from January month-on-month, while cooking oil prices rose 7.2 percent.
Energy costs rose 27.1 percent year-on-year.
Core inflation, which excludes volatile food and energy prices, rose 1.5 percent year-on-year in February.
The government has predicted the inflation rate would stay between 3.0-3.5 percent in 2008.
Thailand's economy has been hit by sluggish consumption and weak business confidence. Investors are hopeful the new government would implement economic stimulus measures.
