Inflation in check, says Somkid
Despite the recent increase in sugar prices, the Commerce Ministry believes it will be able to control the country's inflation with a ceiling of 4.5 per cent this year, but is worried that the higher cost of living will affect low-income earners.
Commerce Minister Somkid Jatusripitak said yesterday that sugar shortages would be a short-term problem. The ministry is working on it and a solution should be found soon. "Without the sugar shortage problem, the country's inflation will follow a downward trend," he said. "However, Thailand's inflation is better than in neighbouring countries." The ministry held a teleconference with its officials in 75 provinces yesterday aimed at monitoring the prices of goods and consumer products and the sugar supply. The caretaker government does not want traders to take advantage of the current political turmoil to increase the price of goods, Somkid said. So far, the ministry has not sanctioned any retail price increases. However, the carbonated drink industry, which uses sugar as a major raw material, is expected to seek a price rise soon. Somkid said the increased price of sugar, combined with the shortage, would directly hit manufacturers. The ministry will ask them to maintain their retail prices for a while if they are still able to make a profit. "We will consider allowing manufacturers to slightly increase the retail price of their soft drinks if they are facing losses," he said. According to a ministry survey, retail prices of goods remain normal, but sugar shortages are hitting some provinces. A slight increase of Bt2.40 or Bt2.50 in the price of large-sized eggs is due to normally lower supplies in the summer season, and lime prices are quite high, between Bt5 and Bt8 per fruit because of poor production. However, high returns for farm goods will alleviate high inflation, the minister said. Somkid has ordered the Internal Trade Department to closely monitor farm goods prices. He said rubber and coffee were trading at Bt75.50 and Bt47 per kilogram, respectively. The ministry has also imposed a pledging programme with a minimum price of Bt1.50 per kg for cassava root, compared with market prices of Bt1.30 or Bt1.40. Somkid has asked the Foreign Trade Department and the Export Promotion Department to ferret out more export markets for tapioca products.
Petchanet Pratruangkrai The Nation
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