BoT not worried by Feb inflation trend

BANGKOK, 3 February 2010 (NNT) – The Bank of Thailand (BoT) anticipates inflation in February to accelerate after the climbing prices of oil and agricultural products, but the rate will still remain under estimation.

Deputy Governor for Corporate Support Services, Ms Atchana Waiquamdee, expected the general inflation to increase in February, similarly to last month when the rate rose by 4.1%. Although considered a rather hasty step-up, the figure was still under forecast.

Ms Atchana added that the inflation rush was not caused by a strong demand for consumer goods but by the increasing food price. Other factors include the rising oil price and reduction in agricultural produce due to plant diseases which has resulted in a crop shortage. However, she said, the situation is not a cause for concern.

Meanwhile, Finance Minister Korn Chatikavanij said he is not worried by the speed of inflation, saying there has been no need so far to change any policy.