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Thai inflation pressure grows as government cuts oil subsidy

Businesses demand curbs on spiraling diesel price

Ending the diesel subsidy will increase the cost of consumer products in Thailand.   © Sipa via AP

BANGKOK -- Thai inflation is swelling as the end of a diesel subsidy has caused logistics costs to rise, adding more pressure to the cost of living that is weighing on the economy.

Producers of several products, ranging from instant noodles to sanitary products and construction materials, are boosting retail prices due to growing logistic costs after a government measure to cap the price of diesel at 30 baht per liter ended on May 1.

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