Flooding pushes November inflation to 4.19% year-on-year: Commerce Ministry

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BANGKOK, Dec 1 – Thai inflation in November rose 4.19 per cent year-on-year to 113.31 due to flooding in Thailand’s central provinces, said Yangyong Puangrach, the country’s permanent secretary for commerce.

The flood crisis in many provinces destroyed crops, halted industrial production, and obstructed transportation and distribution, forcing some commodity prices to rise in early November.

Flooding also impacted consumer spending and reduced the purchasing power of flood victims, who lost income from not working.

The food and beverage index rose to10.21, with meat up 10.84, eggs 29.86, vegetables and fruit 17.11, other food items 14.47 and instant foods 9.91. Non-food and beverages increased 0.54 including home supplies and medicine, clothing and shoes.

Inflation from January to November stood at 3.83 per cent on average, and the ministry is confident that 2011 inflation will remain at 3.8 per cent as inflation in December is likely to drop.

Inflation in the first quarter 2012 is forecast to drop to 3.6 per cent owing to a projected oil price drop, baht strengthening and reduced flooding.

When the flood emergency is over, lower cost of transportation will help reduce prices of consumer goods.

Inflation projecting for 2012 is about 3.3-3.8 per cent.