Thailand's April inflation rate rises 1st time in 16 months

[webfact]

April's inflation rate rises 1st time in 16 months

BANGKOK, 3 May 2016 (NNT) - The inflation rate in April 2016 increased for the first time in 16 months to 106.47 due to increasing prices of meat and fresh vegetables.

The Ministry of Commerce on Monday reported that the April inflation rate was a 0.07% increase following the agricultural product price hike. The price increase was a result of drought and rising fuel price in the global market.

The ministry will consider adjusting this year’s average inflation rate after sees May’s inflation rate. It earlier forecast that the 2016 average inflation rate will be around 0% - 1%.

Agricultural product prices are expected to drop after the rainy season arrives.

Agricultural products whose prices have increased include pork, white shrimps and eggs. However, prices of milled rice, milk and instant noodles have dropped.

-- NNT 2016-05-03

[Brer Fox]

The new tax on sugar drinks should give the inflation rate a bit of a kick along.

[Srikcir]

An inflation rate of 0.07% is within statistical error. In other words, a fairly meaningless number.

What is important relative to inflation is whether wages are rising equal to or ahead of inflation.

As of February 1, 2016 Thailand experienced 13 straight months of negative inflation. While this points to a weak economy, in terms of low wage earners who weren't seeing any wage increases, negative inflation was favorable. But when inflation occurs with low or no wage increases, low wage earners suffer - especially if they carry high debt.

A recent Suan Dusit Poll showed that 84.5% of the respondents complained of low wages and low incomes; 80.37% complained of high cost of living. The labor workforce is asking for an increase in the minimum daily wage.

So even minor inflation ow in Thailand can have a large impact on GDP growth and on the economic wellbeing of Thais.

[Siamthomas]

Professional rorters

[Briggsy]

Thai inflation statistics are always to be taken with a pinch of salt. This has been the case for a considerable time.

Also who has written this? Some kind of moron? He gives an indexed number but not the previous month's index or the previous year's index nor when the index was based.

Also "inflation rate in April 2016 increased for the first time in 16 months," does this mean the rate has turned positive after being negative for 15 months or does it mean it remained the same or decreased every month for 15 months?

And there's more. In the first paragraph, the increase (which in itself is not clear) is put down to "increasing prices of meat and fresh vegetables" and then in the second paragraph it is blamed on "drought and rising fuel price in the global market."

Not finished yet. A 0.07% increase in agricultural prices will have a tiny effect on overall inflation and thus is negligible.

If this was a GCSE Economics warm-up question, it would not get even half marks.

[Siamthomas]

This regime has done exactly 0 for the average person. In fact its in a worse state thdn ever even meat has risen tobacco soda drink anything they can line there pockets on.

[elgordo38]

80% complain about the cost of living? How is that possible if we are in a deflationary cycle. Could someone be feeding us fudged figures?

[phoenixdoglover]

Thai inflation statistics are always to be taken with a pinch of salt. This has been the case for a considerable time.

Also who has written this? Some kind of moron? He gives an indexed number but not the previous month's index or the previous year's index nor when the index was based.

Also "inflation rate in April 2016 increased for the first time in 16 months," does this mean the rate has turned positive after being negative for 15 months or does it mean it remained the same or decreased every month for 15 months?

And there's more. In the first paragraph, the increase (which in itself is not clear) is put down to "increasing prices of meat and fresh vegetables" and then in the second paragraph it is blamed on "drought and rising fuel price in the global market."

Not finished yet. A 0.07% increase in agricultural prices will have a tiny effect on overall inflation and thus is negligible.

If this was a GCSE Economics warm-up question, it would not get even half marks.

The article came from NNT.

Their motto should be,

" If you are not confused by now, you don't understand the situation."

(Apologies to Edward R. Murrow)