May 1, 2008
BANGKOK - Thailand has revised up its inflation forecast for 2008 from 3.0-3.5 percent to 5.0-5.5 percent, because of soaring oil prices.
Finance Minister Surapong Suebwonglee urged people not to be concerned about the revision, amid global concern about rocketing rice, fuel, food and commodity prices.
"Nobody should worry. Thailand's inflation rate is still lower than those in neighbouring countries," Surapong said.
"The adjustment was because of rising global oil prices, which already reached 120 dollars per barrel," he added.
Surapong said, however, that the Bank of Thailand would be keeping a close eye on inflation, according to AFP.
"The government is not overconfident about this issue because the inflation rate is similar to the rate prior to economic crisis (in 1997)," Surapong said.
Thai rice prices have followed the global trend and soared this year, prompting the government to announce Tuesday that it would release all 2.1 million tonnes in its stockpile.
The benchmark Thai variety, Pathumthani fragrant rice, was priced last Wednesday at 998 dollars per tonne for export, up from 512 dollars a tonne in January this year, the Thai Rice Exporters Association said in a price survey.
