However, Mr Pipat said the higher inflation rate would have an outsized impact on low-income earners and some business operators. Thailand's inflation remains subject to upside risks including higher global inflation and cost pass-throughs, said the minutes. Unlike the US, which saw inflation surge by 6.8% late last year, Thailand's inflation tends to be lower than 2% because living costs, notably most food prices, are not high, he said. "This is an important factor causing fresh worries over higher inflation rates around the world," he said. In fact, a moderate increase in inflation may be good for the economy as very low inflation reflects sluggish economic activities, said Mr Kriengkrai.

Source: Bangkok Post January 10, 2022 03:32 UTC