Thai inflation dips into negative territory as oil prices fall

BANGKOK - Inflation in Thailand has slipped into negative territory for the first time since September 2009, largely due to the disinflationary impulse from lower oil prices, especially given Thailand is a significant net importer of oil as well as lower fresh food prices.

For the whole of 2015, ANZ Bank is now forecasting inflation in Thailand at 1.0%, lower than the 1.9% registered in 2014.
“While we are cognisant of the disinflationary impulse from lower energy prices, we are pencilling in a gradual upturn in domestic activity through the course of this year, which will lend support to the inflation numbers,” ANZ says. “Still, risks to our inflation forecasts are skewed to the downside at this juncture.”  www.live.anz.com (ATI).