6 June 2024

The rate of inflation in Thailand has dropped for five consecutive months, to 0.53% in May, which is the lowest for 21 months, thanks to the reduction in electricity and fuel prices, according to Wichanun Niwatjinda, deputy director of the Trade Policy and Strategy Office.

He said that the prices of non-food and non-drink products in May dropped 1.83%, while the prices of vegetables and eggs have increased due to decreased output. Ready-made food prices have also gone up, due to increased production costs.

He warned that inflation may rebound if the minimum wage is increased to 450 baht, as promised by the Move Forward party, and due to the anticipated drought, which will affect the production of fresh food.

According to Charnchai Charoensuk, president of Thai National Shippers’ Council, exports of industrial products, such as electronic equipment and electrical appliances to the United States and China, dropped by 7.6% in April year on year, while exports of agricultural products are increasing.

He forecasts that export growth for the whole year may slow by 1% year on year, as he urged the new government to take steps to promote more exports and the Bank of Thailand to be delicate when adjusting its policy rate, in order not to burden small and medium-sized enterprises.