A sharp rise in the prices of goods and services following higher costs for production, energy, imported materials and logistics has prompted the Commerce Ministry to raise its forecast for headline inflation to 4-5% this year from a previous estimate of 0.7-2.4%.
The new projection assumes GDP growth of 3.4-4.5% this year, an average Dubai crude oil price of $90-110 per barrel and an exchange rate of 32-34 baht per US dollar.
If there are any significant changes, the figure will be revised again, said Ronnarong Phoolpipat, director-general of the Trade Policy and Strategy Office.
Government measures such as price controls of essential consumer goods, a price cap on fuel and subsidies on utility bills, along with the Covid infection rates are factors that offset the growth of inflation, he said.
Mr Ronnarong predicted headline inflation in April to stay at a high…
