Thailand sees rising inflation in line with recovering economy

BANGKOK, February 1 (TNA) - Thailand's inflation rate has been on the rise, reaching its highest level in 28 months, at a 1.55 per cent year-on-year increase,in January 2017. Pimchanok Vonkhorporn, Director-General of the Trade Policy and Strategy Office, under the Thai Ministry of Commerce, told journalists that the record high inflation last month was driven mainly by higher food and retail oil prices. Pimchanok explained that food prices on the domestic market rose due to high demand during the recent Chinese New Year Festival, while the prices of some fishery products were also up owing to floods in the Thai South. The senior official said last month's inflation rate was acceptable and it reflected the recovering national economy. "The inflation rise was in accordance with an increase in oil prices and local farmers' income, as well as rising public spending", the senior official pointed out. According to the senior official, Thailand's average inflation in 2017 should stay around 1.5-2 per cent. (TNA)