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Inflation still has a finger in every pie |
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It cannot be denied that global strong economic growth has invoked inflationary pressures in many countries around the world. Within the European Community, inflation rate has increased from 3.6 per cent in May up to 4 per cent in June, according to the Statistical Office of the European Communities (http://www.tagesschau.de/wirtschaft/euinflation2.html, 30.06.2008). In the USA, inflation increased to 4.1 per cent, the highest since 1990. (Der Tagesspiegel, http://www.tagesspiegel.de/wirtschaft/USA-Inflation;art271,2457447, 13.06.2008) China's inflation rate was 7.9 per cent on average in the first half of the year, higher than that expected by the Chinese government (http://de.reuters.com/article/companyNews/idDEL0841723920080708, 08.07.2008). Within ASEAN, Indonesia's inflation reached a high of 10.4 per cent in May. Philippines’ was at 9.6 per cent, up from 8.3 per cent in the previous month, and Malaysia’s was at 10.38 per cent http://www.taipeitimes.com/News/worldbiz/archives/2008/06/16/2003414869 , 16.06.2008). Vietnam hits the highest inflation rate, over 26 per cent, which has now becomes a serious problem (http://www.radioaustralia.net.au/programguide/ stories/200807/s2294398.htm, 04.07.2008). Thailand’s inflation reached a 10-year high of 8.9% in June, driven by sharp rise in oil prices that is the major contributor to the inflation (http://www.phatrasecurities.com/th/economicResearchPopup.asp?id=102771, 02.07.2008).
Compared within
Southeast Asia, Thailand’s inflation is still classified in the low
level. However, Thailand takes serious action to deal with this
inflation. The Thai government intends to ensure that economic growth
this year will outpace inflation. New measures including support for E85
gasohol, enhancement of renewable energy promotion, as well as
tightening of monetary policy have been implemented to help the public
cope with rising food and energy prices. All of these measures will
further secure Thailand as attractive Land of Investment with
advantageous
and
business-friendly
investment environment. |
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BOI Frankfurt, June 2008 |
