Rising Fresh Food Prices Drive Inflation in Thailand

Inflation rose 2.17% in December, driven by oil and fresh food prices, including fresh vegetables, pork, and eggs, while average inflation is expected to rise 0.8-2.4% in 2022.

The director of the Office of Trade Policy and Strategy (OCP) of Thailand has announced that the consumer price index or overall inflation increased by 2.17% in December 2021, which is a lower rate than the previous month.

This is due to the government’s measures to freeze oil prices. Products from the fresh food group, such as fresh vegetables, are even more expensive than in the same month last year. Pork and eggs became more expensive in line with the cost of their farming. In particular, the price of pork increased in line with the cost of combating swine fever. This is due to the fact that small farms are downsizing their pig farming operations.

However, Rice, fresh fruit, clothing, housing rent, tuition and education fees continued to decline. Other products such as soft drinks, detergents, and personal use items continue to move in the normal direction according to the economic situation and production volume.

Core inflation (excluding fresh food and energy) was 100.73, up 0.05% from November 2021 and 0.29% from December 2020, and the average inflation rate for 2021 (Jan-Dec) was up 1.23%, close to the Commerce Department’s forecast of 0.8-1.2%.

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