Thailand's inflation in December decreased 1.6 per cent from November but rose marginally by 0.4 per cent year-on-year, considered the lowest since August 2002 which stood at 0.2 per cent, according to Siripol Yodmuangcharoen, Permanent Secretary for Commerce.
Inflation for Calendar 2008 stood at 5.5 per cent, Mr. Siripol said. Core inflation, which excludes volatile food and energy prices, in 2008 jumped 2.4 per cent year-on-year.
The continued decline in global oil prices had helped reduce production costs of a variety of foods and beverages, while there are signs that prices of a number of commodities would retreat in future, he said.
The commerce ministry, he said, has projected that inflation in 2009 would stay between 0-1.2 per cent based on the assumption that Dubai crude is at an average of US$50-60 per barrel and the Thai baht moves at the average exchange rate of Bt35-36 per US dollar.
However, if the average oil price in 2009 falls below US$50 per barrel and the Thai government-sponsored six-month economic relief package due to expire at the end of January is extended, average inflation could fall below the projection, Mr. Siripol said.
Although Thailand's inflation projection for 2009 is not high, a tight money problem would not occur in the country, he said.
