July 1, 2009
Bangkok (ASTV Manager Online) – Thailand has already experienced deflation technically since the inflation rate declined four percent for six consecutive months.
Thailand’s economic growth was still minus in the first and second quarter of 2009.
Dropping inflation was caused by falling oil and product prices.
The core inflation figure, based on a survey of 300 items excluding food and energy, fell 1.0 percent in June year-on-year, according to AFP.
However, continual drop in inflation may result in some businesses’ deflation. The most affected sector tends to be the construction business.
Commerce ministry reportedly expects this year’s inflation to be zero to 0.5 percent.
