Thailand's July inflation rate falls 1.05 percent

[webfact]

July’s inflation rate shrank 1.05 percent



BANGKOK: -- Inflation rate or consumers price index for the month of July amounted to 106.57 points or minus 1.05 percent compared to the same period last year, bringing the inflate rate for seven months to an average of minus 0.85 percent.

Mr Somkiat Trirattanaphan, director of Trade Policy and Strategy, said on Monday that inflation rate has steadily dropped for the past seven months as of January due mainly to 2.22 percent contraction in non-food and non-drinks consumer products.

The index of food and non-alcoholic drinks for the month of July increased 1.10 percent.

(Photo : Thai PBS File)

Source: http://englishnews.thaipbs.or.th/julys-inflation-rate-shrank-1-05-percent

-- Thai PBS 2015-08-03

[JoePai]

for seven months to an average of minus 0.85 percent.

Deflation ?

[elgordo38]

for seven months to an average of minus 0.85 percent.

Deflation ?

These guys would not know what a loaf of bread looked like if they stumbled over one

[bangkokfrog]

Next we will be told that deflation is a very good indicator for the economy, brought about no doubt by the government's clever management in bringing down prices.

[Down the rabbit hole]

From Wikipedia:

"Deflation occurs when the inflation rate falls below 0% (a negative inflation rate)."

and

"Economists generally believe that deflation is a problem in a modern economy because it increases the real value of debt, and may aggravate recessions and lead to a deflationary spiral.^[3]"

Increases the real value of debt. What's the average household debt in Thailand lately?

Not a problem? OK.

[lap82]

Good that Thailand is putting down their inflation level.

[martin81]

Yes last year July index was 107.7 so a fall in prices. Probably mostly because a fall in price of Diesel and Gasoline?

[Srikcir]

“inflation rate has steadily dropped for the past seven months as of January due mainly to 2.22 percent contraction in non-food and non-drinks consumer products.”

Director of the Center of Economics and Business Forecast of the Thai Chamber of Commerce University Mr Thanawat Polwichai (2015-04-15):

“Deflation is a result of negative inflation of at least six consecutive months”

THAILAND IS IN DEFLATION.

The primary cause for Thailand’s deflation – government failed to inject as promised sufficient money into the economy for the last seven months. Only 53% of the state investment budget for fiscal 2015 ending this September has been disbursed.

Good thing for Prayut that he wasn’t elected to PM. Otherwise, there would be a new elected government. But bad management by a military junta is like an open garbage can – the smell never leaves until you thoroughly clean it out.

[h90]

“inflation rate has steadily dropped for the past seven months as of January due mainly to 2.22 percent contraction in non-food and non-drinks consumer products.”

Director of the Center of Economics and Business Forecast of the Thai Chamber of Commerce University Mr Thanawat Polwichai (2015-04-15):

“Deflation is a result of negative inflation of at least six consecutive months”

THAILAND IS IN DEFLATION.

The primary cause for Thailand’s deflation – government failed to inject as promised sufficient money into the economy for the last seven months. Only 53% of the state investment budget for fiscal 2015 ending this September has been disbursed.

Good thing for Prayut that he wasn’t elected to PM. Otherwise, there would be a new elected government. But bad management by a military junta is like an open garbage can – the smell never leaves until you thoroughly clean it out.

so not overspending and increasing the countries debt is bad management? Specially as many state investments on the past had the sole purpose to collect kick-backs.

I call it good management.

[ikke]

“inflation rate has steadily dropped for the past seven months as of January due mainly to 2.22 percent contraction in non-food and non-drinks consumer products.”

Director of the Center of Economics and Business Forecast of the Thai Chamber of Commerce University Mr Thanawat Polwichai (2015-04-15):

“Deflation is a result of negative inflation of at least six consecutive months”

THAILAND IS IN DEFLATION.

The primary cause for Thailand’s deflation – government failed to inject as promised sufficient money into the economy for the last seven months. Only 53% of the state investment budget for fiscal 2015 ending this September has been disbursed.

Good thing for Prayut that he wasn’t elected to PM. Otherwise, there would be a new elected government. But bad management by a military junta is like an open garbage can – the smell never leaves until you thoroughly clean it out.

so not overspending and increasing the countries debt is bad management? Specially as many state investments on the past had the sole purpose to collect kick-backs.

I call it good management.

I assume you have never reached the level of managing a company , and if I am wrong and you did, tell me, is the company still alive ?

[Thai at Heart]

“inflation rate has steadily dropped for the past seven months as of January due mainly to 2.22 percent contraction in non-food and non-drinks consumer products.”

Director of the Center of Economics and Business Forecast of the Thai Chamber of Commerce University Mr Thanawat Polwichai (2015-04-15):

“Deflation is a result of negative inflation of at least six consecutive months”

THAILAND IS IN DEFLATION.

The primary cause for Thailand’s deflation – government failed to inject as promised sufficient money into the economy for the last seven months. Only 53% of the state investment budget for fiscal 2015 ending this September has been disbursed.

Good thing for Prayut that he wasn’t elected to PM. Otherwise, there would be a new elected government. But bad management by a military junta is like an open garbage can – the smell never leaves until you thoroughly clean it out.

so not overspending and increasing the countries debt is bad management? Specially as many state investments on the past had the sole purpose to collect kick-backs.

I call it good management.

Consumers aren't spending and exports are tanking. Not dispersing the approved govt budget only makes the drop in gdp worse. Deflation is a terrible spiral.

It is fundamentally irresponsible to actively miss approved spending targets in this context. In fact, with debt to gdp at the rate it is, not spending the budget may well push Thailand into full blown recession and very strong deflation.

That said, deflation caused by oil price falls is a supply side issue not a demand side issue. Thus, deflation in this context can be seen as a bonus for consumers. But, if people stop buying and the govt stops spending at the same time, it can easily spiral out of control like Japan.