Global Energy Crisis Pressures Producer Price Index, April 2025 Growth Reaches 9.1%
Thailand's producer price index surged 9.1% in April 2025 driven by global energy crisis, with mining and industrial products hit hardest while agricultural prices fell due to weak demand. Manufacturers face ongoing cost pressures but limit
According to Nanthapong Jiralertpongsa, director of the Office of Trade and Investment Policy (OTIP), Thailand's producer price index for April 2025 stood at 117.5, representing a 9.1% increase from the same period last year due to rising global energy prices. This surge particularly affected mining products and industrial products, which climbed 10.7%, with petroleum products, related industrial goods, and gold experiencing the sharpest increases driven by Middle Eastern tensions affecting global supply chains and shipping costs. Chemical products, plastics, fertilizers, rubber products, and plastic packaging all saw price increases stemming from higher energy and raw material costs, while agricultural products declined slightly by 0.5% due to ample domestic supply, with decreases in rice, sugarcane, fruits, livestock, and shrimp prices reflecting weak global demand and domestic economic conditions.
Looking ahead to May 2025, the OTIP expects the producer price index to expand at a slower rate, though production costs remain elevated due to persistently high global energy prices and logistics expenses. While manufacturers face continuous cost pressures, their ability to pass these increases to consumers is limited by weak domestic economic recovery and consumer purchasing power, with competitive pricing pressures preventing full price adjustments across industries. Director Nanthapong noted that April's overall price increase reflects the sustained volatility in global energy markets, which has driven up domestic refined oil prices and shipping costs, significantly impacting production costs across multiple industrial sectors.