Commerce Ministry: Inflation contracts for 7th consecutive months

BANGKOK, 3 August 2009 (NNT) – Thailand’s inflation rate in July contracted by 4.4 percent, compared with the same period last year.

Permanent Secretary for Commerce Siripol Yodmuangcharoen said the year-on-year contraction in July had taken place for seventh consecutive month. He said the average inflation rate for the first seventh months in 2009 was 1.9 percent.

Despite the continual contraction of the rate, Mr Siripol said Thailand had not yet been in deflation condition. He however admitted his ministry had revised the rate contraction at one to zero percent, from its previous forecast of zero to 0.5 percent, for the whole year 2009.

Mr Siripol added the contraction in July was a result of the government’s measures to reduce public members’ costs of living and the falling prices of oil products. He said Thailand had not yet faced the deflation condition as domestic consumption rate consumers remained high.