Thailand
Thailand Economics
Thailand's Inflationary Struggles | Thailand's Inflationary Struggles |
|
|
|
| Thursday, 14 August 2008 | |
|
Thailand continues to struggle with higher prices amid flagging economic growth and growing political instability. Bank of Thailand numbers for July saw consumer inflation hit a decade high 9.2%, up from June's 8.9% jump. And while much of the increase can be blamed on sharply higher global energy prices, the July 21.2% leap in the producer price index suggests inflationary pressure will persist for some time. All this comes at a time when consumer confidence is at its lowest point in a year and economic growth appears to be slowing. With the Bank of Thailand's revised growth predictions for 2008 at 4.8%-5.8%, down from 6%, inflation is the last thing the economy needs. If there is a glimmer of hope, it may come in the form of lower energy prices. Oil's recent pullback to $115-120, if it holds is likely to help Thailand avoid the damaging effects of double digit inflation. Of course if lower oil prices do not stick, all bets are off. |
| < Prev | Next > |
|---|