3. Inflation in Thailand
Thailand is an oil-dependent country so the price of oil must offer clues about changes in
overall price levels. In 2000, world crude oil prices increased as OPEC reduced production. As
a result, public transportation costs rose. Bus fare between Bangkok and provinces increased
and motorcycle taxi and passenger ferry fares increased. Still, inflation was moderate in 2000,
offset by a decline in food and beverage prices. Later, the changes in the consumer price index
moved in the same direction as oil prices from 2002 to 2008. The crisis in the USA also
decelerated speculation in oil prices in 2009 and price levels in Thailand are in line with the
change in oil price. There is a general positive correlation between prices of oil and domestic
inflation in Thailand (figure 2).