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21 May 2008

Thai Economy

Increased Bus Fares Affecting Inflation (Business Brief No.2172)

คะแนนเฉลี่ย
The Central Land Transport Committee has approved an increase in bus fares, effective May 25, 2008. This means that all buses operated by the Bangkok Mass Transit Authority (BMTA) and their concessionaries will see fares rise by THB 1.50. Minibuses and air-conditioned bus fares will increase by THB 1. All inter-provincial buses operated by the Transport Company Limited will charge an additional THB 0.30 per kilometer.
KResearch has analyzed the impact of these hikes in the public bus fares:
It is expected that costlier public bus fares will drive up inflation rate by 0.4 percent. The impact of higher bus fares on consumer spending will become apparent in June, after this resolution takes effect on May 25, which will likely spur the inflation rate in excess of 6 percent in June.
Aside from oil, food prices – particularly for rice – plus minimum wage increases which were all responsible for inflation recently, higher bus fares will be another factor that will drive up the average inflation rate for 2008 to the upper boundary of our KResearch inflation target range of around 5.0-5.8 percent.

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Thai Economy