A weaker baht and oil price increases have driven the country's inflation rate, measured by the consumer price index, to rise 2.6% year-on-year in April, compared with a 1.4% rise in March.

The Commerce Ministry attributed the rise mainly to the surge in the non-food sector which rose 3.5% year-on-year against 2.3% in March.

In addition to the baht and oil prices, the increase in excise taxes contributed to the higher April inflation rate.

The energy sector posted the greatest surge, with prices increasing 14.9% from the same month last year.

The excise tax increase forced prices of alcoholic drinks and cigarettes up by 7.8% from the same month in 2000.

Prices in the food sector increased by only 1.0% in April, though vegetables and fruit were up 5.7% year-on-year. Pisit Settawong, head of the Internal Trade Department, said a decision on whether the department would adjust the inflation forecast would depend on the official first-quarter economic figures from the National Economic and Social Development Board.

The department had earlier projected an annual inflation rate of 2-2.5%. Mr Pisit said the NESDB figures would be based on the country's real domestic economic conditions, while the Bank of Thailand's revised forecast for an inflation rate this year of 2.5% took into account external economic conditions.

Source: The Bangkok Post