Inflation : suppliers line up for price hikes

The government may find it hard to control inflation as manufacturers and suppliers are planning to seek Commerce Ministry approval for another round of price increase.

Thai President Foods, the manufacturer of Mama instant noodles, wants to increase its selling price by Bt1 per pack after having raised the price from Bt5 to Bt6 per pack in December last year. [after +20 %, it would be another +15 % !]

As it controls the lion’s share of the market, the move would encourage other instant-noodle manufacturers to ask for price increases as well.

Consumer-goods makers had agreed to freeze prices for at least six months from March 6 following a Commerce Ministry request. But the survey found that prices of most products have already risen. Products whose prices have increased are powder milk, detergent, soap, shampoo, toothpaste and body powder.

Thai Soap, Detergent and Personal Care Manufacturers’ Association president Prapot Nanthawatsiri said all firms are shouldering losses of 5-10 per cent per unit of manufactured goods due to the soaring oil prices and other factors. (Nation)

Exactly like I wrote many times : the inflation tsunami is coming.

Prices controls and other agreements to postpone… are not sustainable on the long term.

At one point, there is a risk that the dam… breaks.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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