Declining fuel prices have prompted the Commerce Ministry to revise downwards the predicted rate of inflation for the year from 6.5-6.9 per cent to 5.9-6.3 per cent.

October's year-on-year inflation came in at only 3.9 per cent, the lowest monthly level this year. Cheaper fuel was the key factor behind the fall, but food prices remained high.

Inflation dropped 1.2 per cent on a month-on-month basis, but increased 6.3 per cent in the first 10 months of the year.

Siripol Yodmuangcharoen, permanent secretary of the ministry, said inflation for the remaining months was likely to drop, with the November and December rates expected to be lower than that for September.

Farm crop prices have dropped in line with oil prices, but prices in the food and beverage sectors increased by 14 per cent compared with the same period last year.

Crude-oil prices have dropped to US$60-$65 (Bt2,097-Bt2,272) per barrel compared with the previous record of nearly $150, while the baht has weakened from 33 to 34 per dollar to a range of 34 to 35.