ID :
77899
Tue, 09/01/2009 - 20:17
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Thai inflation declines by 1 per cent in August

BANGKOK, Sept 8 (TNA) – Thailand’s Consumer Price Index (CPI) dropped by one per cent in August, compared to the corresponding period last year, said Siripol Yodmuangcharoen, Permanent Secretary for Commerce.

The contraction of the consumer price in August represents the eighth consecutive month, he said.

The inflation increased 0.4 per cent, compared to the previous month due to higher prices of oil, some consumer goods and construction materials.

The inflation for the first eight months dropped by 1.9 per cent on average owing to a drop in utility prices as the government extended economic stimulus packages to help low income earners.

The commerce ministry expected the annual inflation rate in 2009 will hover around 0.0 per cent to minus 1.0 per cent, according to Mr Siripol.

The inflation rate is expected to bounce back to positive territory in the last quarter of this year, depending on the global oil price.

He ruled out concern that the drop in the inflation rate for eight consecutive months will lead to deflation, saying he was confident that high demand for commodities won’t cause deflation, which is related to overproduction with less demand. (TNA)



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