Inflation decreases in February

BANGKOK, March 1 (TNA) -- Inflation decreased for the 14th month in a row in February and the Commerce Ministry revised its inflation rate prediction downward to 0-1% this year. Pimchanok Wornkhorporn, deputy spokesperson of the Commerce Ministry, said headline inflation fell 0.50% year on year in February but the decline rate was slower. She attributed the lower inflation to decreases in oil prices, electricity fees, cooking gas prices and inter-provincial bus fares. Prices rose for 156 product items, remained unchanged for 189 items and fell for 105 items. Inflation in February rose 0.15% compared with the figure in January this year due to higher prices of fresh foods during the Chinese New Year festival and an increase in the price of tobacco tax stamps. The increase relieved concerns about possible deflation, Miss Pimchanok said. Inflation fell 0.52% in the first two months of this year. The decline was likely to slow down and inflation should rise in the second half of this year, she said. The Commerce Ministry changed its inflation rate prediction for this year from 1-2% to 0-1% as many organisations revised their projected national economic growth rate downwards, she said. Meanwhile, Vallop Vitanakorn, vice chairman of the Thai National Shippers' Council, said global economic problems were affecting many industries. He predicted the value of Thai export would drop 4.5-5% in the first quarter of this year. Export should pick up in the second half of the year and its growth can be 0-1% throughout this year on the condition that the export value amounts to at least US$18 billion monthly from February to December, he said. Possible sanctions by Europe and the United States against illegal fishing and labour abuse could increasingly affect Thai export, he said. (TNA)