The Commerce Ministry's project, with major suppliers cutting 20-40 per cent off normal prices, is aimed not only at easing the financial strain on consumers but also at curbing

inflation.

Consumer prices heated up by 6.2 per cent last month, but the ministry expects the rate should cool off to below 6 per cent this month thanks to the countrywide discount campaign.

Internal Trade Department director-general Siripol Yodmuangcharoen said the success of the first weekend has encouraged the government to continue the programme until September.

Sales of Bt200 million from the first weekend fairs in 76 provinces produced a saving of more than Bt80 million for households.

Siripol said the activity also helped relieve the serious situation of goods manufacturers desiring to hike prices.

This month no companies have asked for permission to lift prices. Twenty-two product lists from 60 companies are waiting for price-increase approval, he added.

Meanwhile, sales of Mama, the leading instant noodle brand, have increased by 8 per cent in the first five months of the year, said the manufacturer, Saha Pathanapibul Plc, one of the largest trading conglomerates here.

Mama's performance has acted as a barometer of the economy, with demand for the cheap food product growing when times are tough.

Despite suffering from rising oil prices, the company vows that it will be the last to adjust its prices. It is working to scale down its manufacturing and transportation costs.

It expects its total sales to expand by 15 per cent to Bt16.4 billion this year.

Petchanet Pratruangkrai

The Nation