Import and Export Price Indices

- The export price index is a measure of changes in the price of exports used in generating assessments of the price-competitiveness among nations and in determinations of support for the production of goods for export along with expanding the export market. Thailand's export price index for 2010 increased 9.1 percent over-year. Increases were registered in all categories, but especially in agricultural prices, with increases of 33 percent due to volatile weather and flooding. Minerals and fuel prices rose 26.1 percent, industrial agricultural goods 7.2 percent. Prices for industrial goods rose 3.4 percent overall, including, for example, plastic pellets at 10.7 percent, chemicals at 13.9 percent, and precious stones and jewelry at 8.6 percent.

- The import price index is a measure of changes in the cost of imported goods used in the assessment of price competitiveness among nations. It is also used in the determination of a nation's import procedures and in the analysis of economic conditions. Thailand's import price index for 2010 was 8.0 percent higher than 2009's level. Prices rose for most items, but fuel prices in particular increased 19.7 percent. Imports whose prices fell included milk and dairy products, falling 3.9 percent, miscellaneous 3.3 percent, fertilizer and pesticides 1.9 percent, and plastics 1.0 percent.

- Import and Export Price Indices for 2011 will remain high. In May 2011, the export price index was up 6.7 percent over-year, while the import price index rose 11.8 percent over-year. KResearch expects both import and export price indices to decrease in second-half 2011 in line with declining global commodity and energy prices. However, import prices increasing more rapidly than export prices may affect exporters who depend on raw material imports. In addition, the strengthening of the Thai baht against the US dollar may cause declines on export income while, on the other hand easing import costs.