Commerce Min: Flooding will not affect inflation
The Ministry of Commerce has confirmed that the flood problem will not cause the inflation to rise, noting that the September inflation rate has slowed down for the first time in six months.
According to Permanent Secretary for Commerce Yanyong Phuangrach, the inflation rate or the Consumer Price Index (CPI) for September 2011 was at 112.86, up from the same period last year by 4.03 percent. However, the figure was the first shrinkage in the past six months and signified stability of the Thai economy.
The headline inflation in September increased 0.33 percent from August but was the first slowdown in 11 months, thanks to price cuts in such products as fuel and meat coupled with cheaper transport costs.
Mr Yanyong believed the inflation rate would continue on the decline after September since the effects from the Government’s assistance measures, including minimum wage and salary hikes, rice mortgaging and tax refunds for home and car buyers, would not yet be evident.
The Permanent Secretary assured that the current flooding in the country would not lead to higher inflation, reasoning that the overall demand still remained unchanged. He was confident that the Commerce Ministry would be able to maintain the average inflation of this year within the targeted range of 3.2-3.7 percent, citing the US and European economic conditions as well as the prices of oil and commodities as major factors to be monitored.
BANGKOK, 3 October 2011 (NNT) – Reporter : Surapan Laotharanarit
News Date : 03 October 2011
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