From Bangkok Post

Inflation reached seven-month high of 6.2% last month
POST REPORTERS

Inflation measured by the Consumer Price Index (CPI) hit a seven-month high of 6.2% in May, fuelled by soaring oil prices, which sharply raised the costs of energy and public transport.

According to the Commerce Ministry, the May inflation rate rose from 6% in April to the highest level since October last year, exceeding the market's estimate of 6%.

Oil prices, which stayed above $70 per barrel, pushed up May's energy prices by 24% year-on-year and public transport costs by 22.7%.

High fuel prices also affected the prices of vegetables and fruit, which jumped by 23.4% in May, and those of food and beverages, which rose by 5.7%.

Goods and services for which prices were on the rise also included public transport costs, educational costs, sugar and soft drinks.

However, on a month-on-month basis, inflation increased at a much slower pace of 0.7% compared to 1.2% in April.

According to Karun Kittisataporn, the ministry's permanent secretary, high oil prices, which resulted in a 5% increase in the costs of public transport, drove up the price of the non-food and beverages sector by 0.9% from April.

The price of the food and beverage sector increased slightly, only by 0.3% in May compared with a strong increase of 2% in April, particularly due to a drop of 1.7% of fresh vegetable prices.

Core inflation, which excludes volatile food and energy prices, rose 2.7% year-on-year in May, with the monthly rate increasing by 0.6%.

According to Mr Karun, the price trend of crude oil remains a main concern.

Should oil prices become stable, the monthly inflation rate would not increase significantly, he said.

Mr Karun said he expected the monthly inflation rate would stay at not more than 6% and begin to decline in the second half of this year.

Despite the upward trend, the ministry remains confident that the average inflation rate for the whole year will stay at 4% to 4.5% as earlier targeted.

However, the ministry might revise the figures within this month to ensure they reflect changing factors.

In another development, M.R. Pridiyathorn Devakula, the Bank of Thailand governor, said the May inflation rate was not worrisome. He said interest rates were still normal, given the relatively moderate core inflation rate.

Asked whether high inflation would affect the interest-rate policies, the governor said the central bank would have to wait for a decision from the Monetary Policy Committee, which is due to meet next Wednesday.

Commemorative 60-baht note issued

Members of the general public can now book to purchase a specially-issued banknote to commemorate the auspicious occasion of the 60th anniversary of His Majesty an individual's accession to the throne.

The 60-baht commemorative banknote, offered at 100 baht each, can now be reserved at branch offices of the Bank of Thailand (BOT) and those of local commercial banks across the country until June 8. The public can receive the banknote on June 9.

The Government Savings Bank (GSB) and Siam Commercial Bank (SCB) will offer the commemorative banknote on June 9.

The central bank has issued 9,999,999 copies of the special banknote in honour of the revered and beloved Thai monarch on the auspicious occasion this year. (TNA)

It's too bad they didn't use this occasion for a massive issue of thai gold coins as an initial step to place Thailand onto a gold standard.

The gold standard (specie) is the only sound money system. However, no government has been able to withstand the temptation of printing free paper money so specie (standardized gold and silver coins) has been abandoned.

There's a word always used when they mention an individual, never heard it before other than Thailand."auspicious"