"Everything has been controlled by the ministry, which encourages us to restrain the consumer price index for the rest of the year," Somkid said yesterday.

Inflation in June decreased to 5.9 per cent from 6.2 per cent the previous month. The figure for the first half of the year was 5.9 per cent.

Last week, the Internal Trade Department announced it would consider allowing some producers to increase retail prices to offset the skyrocketing oil prices that have affected manufacturing costs.

Somkid said the department had closely monitored prices of consumer goods and was carefully considering whether to approve some price increases.

The Energy Ministry is also trying hard to control oil prices in order to ensure the minimum effect on production costs and consumers.

"We hope that oil prices will not increase aggressively, so that the domestic economy can be well managed," he said, adding that consumers and manufacturers should try to conserve energy use.

In a bid to curb inflation and the burden on consumers during this period of high oil prices, the Commerce Ministry will continue to hold its weekend bargain-goods fairs until September.

The third weekend with goods sold at 20-40 per cent lower than normal prices will be held at the National Stadium in Bangkok from August 4-6.

Siripol Yodmuangcharoen, director-general of Internal Trade Department, said the success of the first and second fairs had encouraged the government to continue the events.

"The fair has indirectly decreased the tension of price increases in the normal market," he said.

Sales totalled nearly Bt200 million from the second weekend fair at the beginning of the month.

Somkid led a large group of Thai businessmen and high-level government officials to the United States last week. He said he had convinced US businessmen to believe in Thailand's potential for foreign direct investment, despite political problems.

"I confirm that the new election should occur soon, but even I am not sure about the precise date," he said.

In addition, Somkid said there are positive signs for Thai shrimp exports since the US may cancel its continuous-bond provision.

Somkid said he was also convinced the US Trade Representative would extend the generalised system of preferences (GSP) to Thai products next year. Otherwise, he said, the Kingdom would lose its competitiveness.

Petchanet Pratruangkrai

The Nation