Thai Inflation Slows On Falling Fuel Costs

[webfact]

Thai inflation slows on falling fuel costs

BANGKOK, October 3, 2011 (AFP) - Thai inflation slowed in September thanks to reduced energy costs and a stronger baht, which lowered the cost of imported goods, the government said on Monday.

The consumer price index rose 4.03 percent in the month from a year earlier, against a gain of 4.29 percent in August, the commerce ministry reported.

"Many factors such as the government's fuel policy and a stronger Thai baht ... helped reduce inflationary pressure," said Commerce Ministry official Yanyong Phuangrach.

Thailand's new government has suspended a levy on petrol and diesel, leading to a drop in prices. On the other hand, food prices continue to rise.

The Thai central bank raised its key interest rate in August for the sixth time this year, to 3.50 percent -- the highest level in about three years -- saying inflation was a bigger threat than a slowing global economy.

-- (c) Copyright AFP 2011-10-03

[slapout]

The drop of the diesel levy in Chiang Mai from the 29.99 cost has resulted in a drop at the pump to 28.74. This is during a time of world oil price drop of 12 to 14 dollar/bbl. The baht weakened against the dollar during this same period by about 4%.

It is nice that the Commerce department does keep the public informed that they are working on controlling inflation.

[OzMick]

Just an attempt to make another bad policy look good. No mention that the cut is temporary or the spiraling public debt that it is adding to.

Balm for the uninformed.