BoT: Minimum wage hike and soaring fuel price might cause inflation


BANGKOK, 26 March 2012  – The Bank of Thailand (BoT) has tasked itself with monitoring the impacts which may arise from the entry into force of the minimum wage hike policy as well as the upward adjustment of fuel price in fear of a possible inflation. 

BoT Assistant Governor for Monetary Stability Suchada Kirakul has disclosed that the central bank will closely assess the result of the implementation of the 300-baht minimum wage hike policy and the increased fuel price in order to determine how much pressure these two factors will put on inflation. She explained that both entrepreneurs and consumers will likely suffer from the minimum wage increase as it will add to the initial production costs while also limiting the people’s purchasing power.

Thus, the BoT is determined to keep a close eye on these two factors to brace the country for a possible resurface of inflation.