December 1, 2009
BANGKOK (AFP) - Thailand is no longer in a state of deflation after consumer prices rose for the second consecutive month in November, the commerce ministry said Tuesday.
Consumer prices rose 1.9 percent year-on-year in November, said Yanyong Phuangrach, the ministry's permanent secretary.
Food prices climbed 0.6 percent, due particularly to an increase in rice and rice products, meat and fish, while non-food sectors such as transportation and communication rose 4.2 percent.
"Thailand has gone out of deflation after prices rose for the last two months. I expect inflation for 2009 to be at minus 0.8 percent, which is still in line with expectations," Yanyong said.
Inflation rose by 0.3 percent compared to October thanks to higher oil and food prices, but average prices for the first eleven months of this year still fell 1.2 percent, he added.
"Inflation is gradually returning to normal and will boost the employment rate and increase public confidence in their income, resulting in more spending," said Yanyong.
Core inflation for November, excluding food and energy, edged up 0.1 percent year-on-year and for first eleven months of this year it rose by 0.3 percent.
The ministry also urged the government to continue its economic stimulus package and predicted that the Bank of Thailand is likely to keep the benchmark interest rate at 1.25 percent until the first quarter of next year.
