After 18 years, Thailand Post raises prices as inflation bites

Thailand Post Co. raised prices for domestic letter and parcel deliveries this week, the first such move by the state enterprise in 18 years, as the country’s inflation rate has accelerated to a 14-year high. 

“The price adjustment is necessary to keep up with the economic situation and costs,” Thailand Post said in a statement this week, after the Cabinet’s green light to increase shipment rates came into effect.  

The state enterprise already absorbed losses of 18.4 billion baht ($510 million) in the decade starting in 2011, according to a government document.  

Thai consumer prices rose 7.66% in June from a year earlier, the fastest pace since July 2008. Accelerating inflation adds to the case for the central bank in Southeast Asia’s second-largest economy to join peers the world over in tightening policies to rein in price gains. 

Still, Thailand Post will maintain its delivery rate of 3 baht for letters of up to 10 grams (0.35 ounces) through the end of 2024, while lifting prices on heavier items. In the maximum weight bracket of between 1-2 kilograms (35-70 ounces), domestic rates will be increased 22% to 55 baht, the government document showed. 

The national courier is also introducing parcels to conform with guidelines of the Universal Postal Union, which is a UN specialized agency.