Consumer prices rose at a slower pace in January as the prices of crude oil and fresh fruits and vegetables dropped.
The Trade Policy and Strategy Office under the Commerce Ministry reported on Fridaythat the consumer price index (CPI), which gauges headline inflation, rose by 0.27% year-on-year in January, slowing from 0.36% in December 2018.
The rise was largely thanks to food prices, especially for rice, flour and cereal products, poultry, eggs, dairy products and seasonings.
On a month-to-month basis, prices contracted 0.02% from December because of a decline in the prices of oil, transport and communications.
Core CPI, which excludes volatile food and energy prices, rose 0.69% year-on-year in January and 0.04% from December.
Of the 422 product and service items used to gauge inflation, the prices of 219 items such as milled rice, pork, processed food and instant coffee rose last month. No price changes were registered for 80 items, while 123 items, including oil, fresh vegetables and fruits, saw prices drop.
Pimchanok Vonkorpon, the office's director-general, said the baht's continued rise was the main factor that resulted in lower oil prices and production costs of manufacturers last month.
"Inflation is nothing to be concerned about, as the lower rate in January stems largely from a reduction of oil prices," she said. "We expect the inflation rate to rise again in February from the Chinese New Year festival."
The Commerce Ministry forecasts headline inflation to average 1.2% this year, or in the range of 0.7-1.7%.
