Thailand
Thailand: Arkhom cools concern
The economy is not overheating and authorities can control inflation rates, says Finance Minister Arkhom Termpittayapaisith.
He said the pace of Thailand’s economic growth was accelerating, unlike in other countries, and he hopes the rebound in the tourism sector will propel the growth momentum.
Mr Arkhom said inflationary pressure was not caused by the demand side, but rather by rising energy prices.
He attributed the easing of inflation rates to the government subsidies for energy prices, including the reduction of excise tax for diesel.
Mr Arkhom said the ministry and the Bank of Thailand are joining forces to curb inflation.
On Tuesday, the cabinet endorsed the extension of zero excise tax on diesel and bunker oil, which are used for electricity generation, for another six months, from March 16 to Sept 15, to ease the public burden from rising living costs.
Headline inflation is expected to decelerate this month after growing during January and February, said Wichanun Niwatjinda, deputy director-general of the Trade Policy and Strategy Office.
The main contributor should be lower prices for fresh food and fuel as global market prices declined last year, in addition to a high price base in March, he said.
The Commerce Ministry on Tuesday reported headline inflation, gauged by the consumer price index, was 3.79% year-on-year in February, decelerating for the second straight month and the lowest rate in 13 months, following 5.02% in January and 5.89% in December 2022.
According to Mr Wichanun, the inflation rate has been steadily decreasing.
The trend is likely to become clearer from the middle to the end of the year, especially from October, as inflation may near 0% or even reach negative territory if oil prices continue to decrease during that period, he said.
Meanwhile, Deposit Protection Agency director Songpol Chevapanyaroj said Thai financial institutions have strengthened since the 1997 Asian financial crisis.
However, he is concerned high household debt and careless consumer spending could become a time bomb for the Thai economy in the future.
Source: https://www.bangkokpost.com/business/2523589/arkhom-cools-concern