First negative inflation likely in six years
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THAILAND is highly likely to post negative inflation in 2015 for the first time in six years, mainly because of plunging oil prices and the sluggish economy.
“Annualised inflation could be lower than the previous target of 0.6-1.3 per cent and could enter negative territory. But it should not be a worry, since it is due to lower global oil prices, which have affected many products,” Somkiat Triratpan, inspector-general of the Commerce Ministry and director of its Policies and Trade Strategies Bureau, said Tuesday.
The ministry will next month officially announce its new inflation projection for this year.
Thailand posted an inflation rate of negative-0.9 per cent in 2009 after the US-led financial crisis, a period that also saw a steep decline in global oil prices along with populist measures by an elected Thai government to subsidise the cost of living.
