Thailand Post 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, after the cabinet’s approval to increase shipment rates came into effect.
The state enterprise already absorbed losses of 18.4 billion baht in the decade starting in 2011, according to a government document.
The Consumer Prices Index rose 7.7% in June from a year earlier, the fastest pace since July 2008. Accelerating inflation adds to the case for the Bank of Thailand to join peers the world over in tightening policies to rein in price gains when its Monetary Policy Committee meets next month.
Still, Thailand Post will maintain its delivery rate of 3 baht for letters of up to 10 grammes through the end of 2024, while lifting prices on heavier items. In the maximum weight bracket of between 1 and 2 kilogrammes, domestic rates will be increased by 22% to 55 baht, the government document showed.
The national postal service also said it was introducing parcels to conform with guidelines of the Universal Postal Union, aa UN specialised agency.