02/06/2012 (Bangkok Post) - Pressure from rising prices of cooked food and fresh produce pushed up May inflation 2.53% year-on-year, says the Commerce Ministry.

The consumer price index stood at 115.23 points for the month, which was 0.39% higher than April.

Inflation in April was 2.47%.

Inflation for the first five months of the year is 3.03% year-on-year, so the ministry has maintained its projection for the full year of 3.3-3.8%, said permanent secretary Yanyong Phuangrach.

Factors driving inflation in May were the rise in the food and beverage index by 5.18%, especially fresh vegetables and fruits rising by 15.23% and cooked foods by 5.53%.

The non-food group index rose by 0.83% and transportation by 0.11%.

Minibus fare rose on May 15 to eight baht a trip from 6.50 baht, while songthaew and local buses rose to seven baht a trip from 5.50 baht, which will affect annual inflation by 0.06%.

Mr Yanyong said core inflation in May, which excludes fresh food and fuel, was at 108.15 points, up by 1.95% year-on-year and 0.29% month-on-month.

For the year, core inflation rose by 2.46% from the same period last year - still within the Bank of Thailand's 0.5% to 3% range.

Mr Yanyong believes inflation was quite stable last month, with no signs of lower consumer purchasing power as the government's daily minimum wage hike, mortgage programmes for crops and investment in infrastructure helped consumers deal with rising prices.

The ministry estimates June inflation will be 2.8% to 2.9% higher than last year, while second-quarter inflation will be 3.2%.

A higher rate is expected in the second half of this year, as past records indicate this trend.

The producer price index in May was at 139.9 points, up by 1.2% year-on-year but down by 0.2% month-on-month thanks to drops in the prices of petroleum, rubber products, palm oil, sugar, steel sheets and gold.