Commerce Ministry to revise inflation target

BANGKOK, September 2 (TNA) -- Commerce inspector-general Somkiat Triratpan said Commerce Ministry is planning to revise Thailand’s targeted inflation in October after suffering contraction in the first eight months this year. Despite the decline in inflation, Thailand has not yet entering a tight money situation, Mr Somkiat said. His comments were made after inflation in August stood at 106.33, down 1.19 per cent year-on-year. Inflation declined for the eighth month in a row and on average it fell 0.89 per cent during the first eight months this year when compared to the same period last year. Mr Somkiat said the fall of inflation in August was attributed to the continued decline in retail oil prices, including cooking gas, along with fresh food prices in Thailand because of not enough demand. It is assumed that global crude oil prices would continue declining, forcing the ministry to revise this year’s inflation rate, said Mr Somkiat. Inflation was earlier targeted between 0.6 – 1.3 per cent under an assumption that Thailand’s economy in 2015 would widen 3- 4 per cent while average Dubai crude at between 50 – 60 US dollars per barrel and the forex stands between 32 – 34 baht against a US dollar. If global crude oil prices continue falling, Thailand’s inflation in 2015 would retreat six months in a row although the Thai government plans to spend about 1.1 trillion baht from its budget on several development projects. Mr Somkiat asserted that Thailand had not yet entered tight money situation. People have curtailed spending because they did not have enough confidence in the country’s economy. So far 148 items of goods have increased prices compared to 111 items whose prices fell and prices of 191 items remained unchanged, he said. (TNA)