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| By Manager Online | 1 February 2010 18:06 |
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February 1, 2010
BANGKOK (AFP) - Thailand's inflation rate hit a 16-month high in January as it rose for the fourth straight month, the commerce ministry said Monday.
Consumer prices increased 4.1 percent year-on-year in the first month of 2010, after rising 3.5 percent in December, the ministry's permanent secretary Yanyong Phuangrach said.
He said the January figure -- the highest since an inflation rate of 6.0 percent in September 2008 -- was a sign of economic improvement, which would be further stimulated by the low interest rate.
"However the domestic political situation is a factor which may affect the economy," he said, as Thailand braces for fresh street protests by anti-government demonstrators in coming weeks.
Consumer prices were up 1.9 percent year-on-year in November and 0.4 percent in October -- the first increase in 2009.
The ministry forecast an inflation rate of between 3.0 and 3.5 percent for 2010.
The core consumer price index, which excludes volatile energy and food costs, rose 0.6 percent in January from a year earlier.
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