Consumer Price Index December 2016 and year 2016 News Release

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1 Singapore Thailand South Korea Taiwan Philippines China Vietnam Malaysia Hong Kong Indonesia India Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov 110 Consumer Price Index December 2016 and year 2016 News Release Index Inflationary Trend (Headline CPI) % YoY Contribution of Inflation (Percentage Points) Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Tobacco and alcoholic beverages (1%) (6%) Transportation and Communication (22%) (7%) (25%) Apparel and Footewear (3%) Food and Non-alcoholic beverages (36%) Percentage changes (YoY) Annual Inflation Rates (Ave.Jan-Nov.16) GDP f Inflation Forecasting (As of Dec.16) Exchange Rate f Dubai Oil f Inflation rate (YoY) (YoY) Baht/USD USD/Barrel Highlights 4 January 2017 Inflation rate in 2016 was 0.19 percent and remained in the projection level of Ministry of Commerce between Inflation rate increased positively and continuously during the last quarter of the year resulting from the increase in world crude oil prices which affected the goods and services applying energy as the main source. However, that increase of inflation was just mild and was the criteria that support the economic growth as a whole. Level of goods and services In December 2016,the rate was higher than last month at 0.13 (MoM)and was mainly due to gasoline prices, seasonings and condiments and non-alcoholic beverages.while food prices mostly decreased. Prices movement were as the followings: Gasoline prices increased 4.84 percent(mom) because the big suppliers annouced to increase the retail gasoline price 3 times in December Seasonings and condiments increased 0.42 percent(mom) such as soy source, tamarinds, fish sauce and instant coconut milk. Non-alcoholic beverages increased 0.95 percent (MoM) from hot/iced coffee. Fresh vegetables especially shallot plants, kale, coriander decreased because vegetables supply to the market decreased according to the season change to winter. Fresh fruits such as oranges decreased because of the continuous supply to the market from the previous month Pork and eggs decreased from the over supply while consumption was still low. Inflation rates in 12 months hastened at 1.13 percent (YoY) because of the increase in gasoline retail prices following the increase in prices in the world market. Gasoline prices was the accelerated factor in this fourth quarter while it retarded the rates since2015.for food and nonalcoholic prices such as chili, cabbages, eggs increased slightly this year as there was the change in the weather condition.while electricity prices and cooking prices showed the negative effect on inflation in Ministry of Commerce projected 2017 inflation rate at under these consumptions: 1) GDP at percent.production, farmer income, export of goods and services gradually adjusted better affecting overall growth. 2) Dubai prices at USD/barrel. Expecting more demand for oil while supply gradually in stability because of the production limitation of OPEC. 3) Foreign exchange at baht/usd slightly depreciated.

2 Consumer Price Index December 2016 and Year 2016News Release Consumer Price Index December 2016 and Year 2016 Consumer Price Index (CPI) is a measure of average change over time in the prices of consumer items goods and services that people buy for day-to-day living.cpi comprises of Food and Non-alcoholic beverages, Apparel and Footwear,,, Transportation and Communication, Recreation and Education, Tobacco and alcoholic beverages divisions covering 450 items Consumer Price Index of December 2016 can be concluded as the following: 1.Consumer Price Index of December 2016(base year 2011) was (November 2016=106.79) 2.The changes in CPI of December 2016 comparing with Period Change Percent 2.1 November 2016 (MoM) increase December 2015 (YoY) increase Average 12 months (AoA) (January December 2015) increase Comparing with November 2016(MoM) increased 0.13 percent. The percentage changes in each category are shown in Chart 1. Transportation and Tobacco and Alcoholic beverages Food and Non-alcoholic percent (MoM) Inflation rate of December 2016 was 0.13 percent increased from November 2016(MoM). This was mainly due to Transportation and Communication category up 1.21 percent (gasoline prices such as Benzene 95, Diesel, Gasohol 91, 95 and NGV up 4.84). Tobacco and alcoholic beverages category and Recreation reading category and category up.apparel and Footwear category up 0.01.While Food and Non-alcoholic beverages category down (Shallot plant, oranges, pork, rice and eggs) and category down percent (house rent, detergent, floor cleaner detergent, dish washing liquid) 2.2 Comparing with December 2015(YoY) increased 1.13 percent. The percentage change in each category are shown in Chart 2. Tobacco and Alcoholic Transporation and Food and Non-alcoholic Percent (YoY) Inflation rate of December 2016 was 1.13 percent increased from December 2015.This was mainly due to Tobacco and alcoholic beverages category up percent such as cigarettes (up 28.01)Transportation and Communication up 3.01 (gasoline). Food and Non-alcoholic beverages category up 1.36 (chili, cabbages, eggs, rice and curry/box food). category up 0.58 percent (personal beauty service expenses, life insurances, personal care items such as toothpaste, shampoo) category up 0.52 (private elementary school fee, university tuition fee) category up While goods and services in category down percent(electricity and cooking gas)

3 Consumer Price Index December 2016 and Year 2016 News release 2.3 Comparing with averaged 2016 and averaged 2015 (AoA) increased 0.19 percent.the percentage changes in each group are shown in Chart 3. Percent (AoA) Tobacco and Alcoholic beverages Food and Non-alcoholic beverages Transportation and Communication Inflation rate in these 12 months(jan.-dec.16/ Jan.-Dec.15)increased by 0.19 percent (AoA). It was influenced by changes in prices of goods and services mostly in Tobacco and Alcoholic beverages category up percent.food and Non-alcoholic beverages category up 1.61 percent. category up 0.80 percent. category up 0.79 percent. category up 0.40 percent. While goods and services in category(electricity and cooking gas) and Transportation and Communication category (gasoline) decreased slightly at and respectively. 3.Inflation forecasting 2017 Trade policy Strategy Office (TPSO) projected that inflation will be between in 2017 under these assumptions: 1. Economic growth (%) 3.25 ( ) 2. Duai prices (USD/Barrel) 50.0 ( ) 3. Foreign exchange (Baht/ USD) 36.5 Projection Economy shows expansionary trend from 2016.This is because of those supporting factors such as household expenses, household expenditure, production and higher farmers income, expenditure and investment of the government projects, higher services export and positive direction of export which support the growth as a whole. Dubai prices in 2017 tends to increase from 2016 expecting that demand for oil will increase 1.2 million barrel per day following the economic recovery. Now demand and supply for oil are in balance according to OPEC control of production which caused less fluctuation in prices. Foreign exchange for USD tends to depreciate due to In December, foreign exchange based on USD =35.81 Baht/USD FED and adjusting Dubai prices interest (average) rates as = well as USD/barrel expansionary (as of 29 December 2016) ( ) monetary policy in many countries. 4.Factors affecting Inflation Supporting factors Demand of households gradually recover which relevant to the production and farmer income. Revenue from export shows the positive signal. Government measures support the purchasing power of the households during the festival. Risk factors Prices trend of crude oil in the world market increase affecting retail price of gasoline in the country. Baht tends to depreciate working on the competitiveness of export as well as cost of import.

4 Consumer Price Index December 2016 and Year 2016 News release 5. Table of CPI structure and Inflation (2554 = 100) Portion December 2016 November 2016 Items Weight Index %Change Index %Change Dec.16 Dec.16 Dec.16 M/M Y/Y A/A Nov.16 M/M Y/Y A/A Headline CPI Food and Non-alcoholic beverages Rice, flour and cereal products Meat, poultry and fish Eggs and diary products Vegetables and Fruits Fresh vegetables Fresh fruits Seasoning and Condiments Non-alcoholic beverages Prepared food at home Food away from home Non-food and beverages Transport and Communication Public transport services Motor Fuel Communication Recreation and reading Tobacco and alcoholic beverages Core Inflation Fresh food and energy Fresh food Energy

5 Consumer Price Index December 2016 and Year 2016 News Release A Brief Explanation of Consumer Price Index (CPI) and Inflation Consumer Price Index is a measure of the average change in prices of goods and services or basket of goods consisting of 1) Food and Non-alcoholic beverage 2) 3) Housing and Furnishing 4) 5) Transportation and Communication 6) Recreation and Education 7) Tobacco and alcoholic beverages divisions covering 450 items. CPI is computed by comparing prices of goods over time to the base year (current base year : 2011) which are set as 100.However, households under this calculation are represented by household in metropolitan area with 1-5 people and 10,000-60,000 Baht/month revenue, in Bangkok and suburban area and all 4 regions of Thailand covering 43 provinces. 1 Headline Inflation is a measure of the average change over time in the prices of consumer items-good and services that people buy for day-to-day living (base year : 2011) Core Inflation is the headline CPI deducted fresh food prices(which are fluctuated and seasonal) and energy prices (which are not in control of Monetary Policy).The items left are subjected to the market mechanism and can be provided the fundamental inflation picture of Thai economy. In conclusion, CPI is to measure inflation of the economy which is of the economic indicators. To analyze, we will take all the factors those affect to the prices of goods into consideration such as the factors those has influence on cost of production i.e. gasoline cooking gas (LPG), public utility expenses, excise tax and so on. If those factors affect on the changes in prices of goods and services, the inflation will move higher (and vice versa) which finally will cause higher cost-of-living and affect the growth of the economy provinces in the index computation are Bangkok and suburban 1.Bangkok 2.Nonthaburi 3.Pathumthani 4.Samutprakan Central region 5.Ayutthaya 6. Lopburi 7.Singhburi 8.Chonburi 9.Rayong 10.Chanburi 11.Prajeenburi 12.Ratchaburi 13.Supunburi 14.Petchburi 15.Prajuabkhirikun Northern region 16.Nakhonsawan 17.Taak 18.Prae 19.Chiengmai 20.Chiengrai 21. Uttraladit 22.Pitsanulok 23.Petchaboon 24.Naan North eastern region 25.Nakhonratchasima 26.Khonkaen 27.Surin 28.Ubonratchathani 29.Nongkai 30.Srisaket 31.Mookdahan 32.Udonthani 33.Roi-ed 34.Nakhonpanom Southern region 35.Surathani 36.Nakhonsithannarat 37.Trang 38.Songkhla 39. Yala 40.Phuket 41.Krabi 42.Narathiwat 43.Ranong