UTCC: Recent commodity price hikes only have small effect on inflation

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BANGKOK, 2 Sep 2013 The University of the Thai Chamber of Commerce (UTCC) indicates the recent hike in Liquefied Petroleum Gas (LPG) price for households, and expressway tolls on September 1st will not significantly effect the national inflation. It also brushed off worrying signs on the country’s economy. 

Director of the UTCC’s Economic and Business Forecasting Center Tanawat Polwichai explained that the 2 price hikes would only cause the inflation level to increase by 0.2-0.3%.

The price of LPG would be increased by 50 satang per kilogram per month which is a 3% increase from the previous price of 18.13 baht per kilogram while the Expressway Authority of Thailand would collect 5-10 baht more for its service, an approximately 10% increase from its previous fee.

He pointed out that the increase in toll fee does not have any effect on those who do not use expressways regularly.

Director Tanawat also stated that the inflation level has a potential to decline in a short term and is likely to surge in the 4th quarter following the sign of economic recovery.

He ensured the public that Thailand’s economy currently has no signs of danger.