Thailand's inflation jumps 8.9 per cent

Bangkok- Thailand's year-on-year inflation jumped 8.9 per cent in June, ramped up by rising fuel and food prices, the Commerce Ministry said Tuesday.

June's consumer price index rose 1.2 per cent compared with May's and was up 6.3 per cent for the first six months of 2008, Commerce Ministry Permanent Secretary Pailah Sudsawang told a press conference.

In June, the main inflationary component was food and beverages, which rose 11.4 per cent year-on-year, she said.

Thailand is a net importer of oil and one of Asia's few net exporters of food.

Rising oil prices automatically mean higher crop prices because most Thai farmers rely on petroleum-based fertilizers and pesticides and fuel for tractors and transport. dpa

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