The inflation rate in June was reportedly at 108.15 or
3.3 percent year-on-year, the ninth consecutive monthly increase, mainly
owing to the 6.1 percent rise of food and beverage prices, said Yanyong
Phuangrach, Permanent Secretary for Commerce.
Consumer Price Index (CPI) in the first six months of
this year rose 3.5 percent, compared to the same period last year, thanks to
an increase in fuel prices by 26.7 percent, piped water by 47.5 percent and
electricity by 2.0 percent.
The CPI in June rose 0.26 percent compared to the
previous month. Goods and services prices in June increased at a slowing
pace, compared to May as fresh food prices nationwide increased on average,
including eggs, which rose from Bt3.18 in May to Bt3.35 in June.
The Core Consumer Price Index in June was up 0.12 percent
from the previous month and rose 1.1 percent from the same period last year.
The commerce ministry maintained its projection of 2010
inflation at between 3-3.5 percent and CPI in the second quarter is likely
to stay around 3.5 percent on average on the condition that crude oil price
stays at US$70-80 per barrel and the baht is around 31-33 baht against US
dollar.
Extension of government measures to help low income
earners for another six months will help maintain inflation at the level
projected by the commerce ministry. (MCOT online news)
The economic crisis in Europe is very likely to impact
Thailand’s exports and the flow of foreign investment into the country,
according to the Export and Import Bank of Thailand (EXIM).
EXIM Bank president, Apichai Boontherawara said he believed
the European debt turmoil would dampen Thailand’s exports, particularly of
luxury furniture and electrical appliances, and have an impact on foreign direct
investment.
In 2009, he said, the Thai economy relied on foreign direct
investment from developed countries to the amount of US$4 billion or more than
half of the total FDI, while the number of tourists from Europe surged to 29
percent of the total foreign arrivals.
However, it is expected that FDI will flow into the country
more slowly this year, as will the number of foreign tourists.
Thai exporters are attempting to position their products in
new markets to offset an anticipated shortfall in purchase orders placed by
existing markets, he advised.
In particular, they should pay attention to expanding into
ASEAN + 6 (ASEAN members and China, Japan, South Korea, India, Australia, and
New Zealand), which have a total trade value of up to $6.4 trillion.
Apichai said the EXIM Bank is ready to extend loans and
export guarantee services to exporters.
Under the loan guarantee scheme, if exporters are unable to
settle the payment of products, the bank will compensate damages of up to 50
percent of the export bill value or a maximum of Bt3 million. (TNA)
