Some business operators could raise their product prices in the current quarter, given higher fuel costs and wages, while an expected increase in foreign orders points to an export recovery, according to a recent survey by the Bank of Thailand.
"The three-month confidence index for product selling prices stays above 50, reflecting the likelihood that operators will raise their prices following increases in the prices of raw materials and fuel, as well as in wages," the central bank said.
Similarly, based on the BOT’s information exchange with operators, many of them planned to raise their product prices gradually over the course of the year.
The property sector may boost prices after higher costs of land and construction materials, and taking into account demand and purchasing power, the survey found.
However, some businesses, such as processed-food exporters and transport providers, may not be able to increase their prices this year due to their yearly contract terms.
The survey was conducted on 198 business chiefs across the nation during the first quarter.
The monthly business-confidence survey, meanwhile, was conducted on 1,010 companies.
The survey found that exports could do well in the coming months, given the fact that the three-month foreign purchasing-order index stood above 50. An index above 50 means operators remain confident of gaining foreign orders in the next three months.
However, the baht’s appreciation remains a risk to export performance.