Thailand’s 2022 inflation may hit highest level in 10 years

20/12/2021 15:13

Thailand’s headline inflation is expected to hit its highest level in a decade next year driven by cost-push factors including rising imported raw materials, a recovery in domestic demand, relatively high oil prices and a labour shortage, according to the country’s Trade Policy and Strategy Office (TPSO).

Thailand’s 2022 inflation may hit highest level in 10 years ảnh 1

Shoppers at Future Park Rangsit in Pathum Thani province (Photo: bangkokpost.com)

Bangkok (VNA) - Thailand’s headline inflation is expected to hit its highest level in a decade next year driven by cost-push factors including rising imported raw materials, a recovery in domestic demand, relatively high oil prices and a labour shortage, according to the country’s Trade Policy and Strategy Office (TPSO).

Ronnarong Phoolpipat, TPSO director-general, said that Thailand's headline inflation is likely to top 3 percent next year from a range of 0.8 percent to 1.2 percent this year.

The projection assumes the Omicron outbreak is not serious and the country's reopening brings about recovering economic activities and tourism as hoped, along with higher domestic demand and spending.

Other factors include scarcity of labour and the impact of external factors such as higher imported raw materials like steel and fertiliser, as well as continued high oil prices, said Ronnarong.

He suggested the government reintroduce subsidy schemes for water and electricity bills as well as other assistance measures to help reduce people's living costs./.

VNA