Inflation in February ran at 0.73% year-on-year on rising retail oil prices, the Commerce Ministry reported on Friday. It expected 2019 inflation to come in at 1.2%.
Pimchanok Vonkorpon, the trade and policy strategy director, said rising oil prices raised the cost of food and non-alcoholic drinks by 1.89%. This included rice, flour and flour-based products, which rose by 5.15%. Prices of meat, poultry and aquatic animals increased by 4.05%.
The slow increase in the consumer price index did not raise concern because people continued to purchase products and services and the economy is growing, she said.
Inflation in the first two months of this year ran at 0.49%. Ms Pimchanok predicted inflation at 0.67% in the first quarter, 0.98% in the second quarter, 1.27% in the third quarter and 1.81% in the fourth quarter of this year.
The Commerce Ministry expects an overall inflation rate of 1.2% this year in the expectancy the economy would grow 3.5-4.5%, the crude price was at US$70-80 a barrel and the baht's value at 32.5-33.5 baht per US dollar, Ms Pimchanok said.
