Consumer Price Index reached 119,5 against… 119 in december 2007. Therefore, it’s an increase of 0,4 %.
For the whole year, inflation rate is 5,5 %.
The Bangkok Post writes : “December inflation hit 76-month low”.
It’s of course misleading… Base effect and the sharp drop of oil prices and the subsidies (since august, free water, free electricity, subsidy on diesel etc.) explain this result.
But if we look at the details… we see that the group “Food and Beverage” (with a weight of 36 % in the index) has increased by 13,9 % year on year.
“Electricity, fuel, water supply” (5,10 % of the index) plunged by… 37,3 %. 😉
For that matter, it’s easy to forecast a negative inflation rate (particularly on Q2 of 2009).
The good news is the sharp fall of PPI (producer price index).