Thailand's inflation remains low, edges up next year

BANGKOK, December 4 (TNA) - Thailand's inflation remains low at around 3 per cent this year but it is likely to edge up next year, to 3-3.6 per cent, boosted by people's higher purchasing power and businesses' rising production costs. As Thailand's inflation slowed to 2.74 per cent last month, its lowest in three months, the Kasikorn Research Center (KRC) has revised its forecast for the country's inflation this year, from 3.1 per cent to 3 per cent on average. However, the leading private think tank projected that Thailand's inflation should be on the rise next year, to 3-3.6 per cent on average, due to higher costs in the private sector, including the increased daily minimum wage to 300 baht nationwide as of January 1, 2013, the gradual rise in energy prices resulting from a cut in the government's subsidies for diesel and natural gas, covering cooking gas, and higher electricity fees, but workers' higher income and purchasing power. The SCB Economic Intelligence Center of Siam Commercial Bank also estimated that Thailand's headline inflation should remain at some 3 per cent and core inflation at about 2.2 per cent on average this year. The SCB Economic Intelligence Center said although Thailand's inflation rose lower than expected last month due to a drop in fresh food and energy prices, the country's inflation direction should remain intact in the future, given high fluctuations of fresh food prices normally. Earlier, the Ministry of Commerce also forecast that Thailand's inflation should not exceed 3 per cent on average this year and should stand around 2.8-3.4 per cent on average next year. (TNA)