Govt revises 2020 inflation prediction downwards
The Commerce Ministry has revised its projection for 2020 inflation downwards despite an upward trend as the lockdown is lifted.
Pimchanok Vonkorpon, director-general of the ministry’s Trade Policy and Strategy Office, said that while inflation fell 1.57 per cent year on year in June, it had risen 1.56 per cent in May. Monthly inflation in the first half of 2020 fell by an average 1.13 per cent, she added.
“The inflation situation is improving as Covid-19 restrictions are eased and government measures bring economic improvements in services, retail, transportation and tourism, as measured by indices such as the Consumer Confidence Index and Producer Price Index,” Pimchanok said.
The director-general pointed to May’s upward trend and said inflation is expected to rise towards normal territory in the third and fourth quarters.
Pimchanok said power prices are likely to rise for Thai consumers after Opec cut oil production, while lingering drought conditions were still creating uncertainty over Thai agricultural products.
However, economic conditions meant inflation will stay in negative territory. The Commerce Ministry has adjusted its projected 2020 inflation range from -0.2 to -1 per cent (median -0.6 per cent) to -0.7 to -1.5 per cent with a median of -1.1 per cent.
