Floods Prop Up Thailand's Inflation In Nov 2011

BANGKOK, December 1 (TNA) - Thailand’s consumer price index (CPI), the gauge of inflation, rose sharply in November to 113.31, up 4.19 per cent year-on-year, due to impacts from severe floods in several provinces, including some parts of Bangkok and surrounding provinces. Thai Permanent Secretary for Commerce Yanyong Puangraj acknowledged on Thursday that the flooding crisis since late July had affected several agricultural and industrial manufacturers, along with transportation of goods, causing certain goods prices to steadily rise in November. Yanyong said that flood-related problems had also resulting in local consumers being unable to spend normally, as a number of them had lost income. According to the senior official, the food and beverage index under the CPI particularly surged by 10.21 on average last month, with meat up 10.84, chicken egg soaring 29.68, fruits and vegetables up 17.11 and cooked meal up 9.91. The senior Thai commerce Ministry official noted that average CPI during the January-November period of this year stood at 3.83 per cent, projecting that Thailand's average CPI this year should stay at 3.8 per cent, as signs have indicated that the country's inflation will be declining this month. Thailand's inflation during the first quarter of 2012 was, meanwhile, projected to retreat to 3.6 per cent due to high expectations that oil prices would fall and the Thai baht would become stronger; while the country's average inflation in 2012 was foreseen to hover around 3.3–3.8 per cent, thanks to a drop in local consumer goods prices and transportation costs in the post-flood period. (TNA)