Interest Rates To Continue Rising

July 2005
Asia Monitor: South East Asia Monitor Volume 1;Jul2005, Vol. 16 Issue 7, p1
Country Report
Country Report
This article focuses on how rising inflationary pressures remain a major concern for Thai policymakers. Although headline inflation has fallen from the 3.6 percent y-o-y peak it reached in September 2004, to 2.5 percent in February 2005, a number of factors point to inflation creeping up over the coming months. These factors include: higher oil prices, which reached another nominal all-time high in early April 2005; the government decision in March 2005 to cut diesel subsidies, which increased pump prices by 27 percent and is likely to push up the CPI (consumer price index) by around 0.4 percentage points over the next few months.


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