Rise in prices may drive up cost of living

The ministry will attempt to hold off the move as long as possible, saying it would worsen inflation, which touched 6.2 per cent last month.

Internal Trade Department director-general Yangyong Phuangrach yesterday said the ministry would carefully con-

sider whether this was the right timing to allow prices to climb further.

"Some manufacturers have asked for price hikes on 500 items. However, the ministry has not allowed any producer to raise prices, in order to ensure that

consumers are not affected," he said.

Yangyong said most producers should not raise prices in a highly competitive market.

The ministry is concerned about products like construction materials, fertilisers, pesticides and cooking oil. It is studying

the price structure of these

goods before allowing a price increase.

The price of steel is under consideration, with producers lobbying for a hike since February.

The steel subcommittee previously proposed raising steel prices Bt7 per kilogram this month, but the ministry has delayed its decision, citing the need to study the impact on the industry first.

The ministry later this week will meet with representatives from the Iron and Steel Institute of Thailand and the Federation of Thai Industries, to discuss appropriate retail prices and supply issues.