Rising inflation

The Commerce Ministry said escalating oil prices helped push last month's inflation up to a level not seen since June 1998. With the world oil price pegged to soar to US$150 (Bt5,000) per barrel, the ministry has revised its oil-price base for inflation calculations from $105 a barrel to between $120 and $125.

"The ministry expects the average oil price will be $142 a barrel in the remaining months, which would drive inflation to 7 per cent for the year," deputy permanent secretary Pairoa Sudsawarng said yesterday.

Inflation in the first half shot up to 6.3 per cent, exceeding the ministry's whole-year target of 5.5 per cent.

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Indexes falling

Thailand's leading indexes on business and industrial confidence have dropped to their lowest levels in several years because of increased concern over oil prices and political conflict.

The Bank of Thailand's latest Business Confidence Index (BCI) shows that confidence about the next three months has dropped to the lowest level in nearly seven years, while confidence in private consumption and investment has also declined significantly.

The BCI fell to 44.4 in May, the latest month for which data are available. This is the lowest since September 2001.

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Thaksin plea

The Supreme Court last week rejected former premier Thaksin Shinawatra's request to travel abroad on the grounds that his planned trip could not be justified at this time.

In a writ lodged on June 24, Thaksin asked for the court's permission to begin his trip on June 27, but the nine-judge Criminal Tribunal for Political Office Holders reminded him about the close proximity between his trial date and the foreign trip's schedule.

The ousted premier is due to face his first graft trial next Tuesday, which involves the Ratchadaphisek land case in which he is alleged to have abused his power while in office.

Kamnuan Chalopratham, Thaksin's lawyer, said yesterday the former premier was considering filing an appeal with the court against the current ban on international travel, as such an order has affected his overseas businesses.

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Social Security

Finance Minister Surapong Suebwonglee proposed that a portion of the Bt400-billion Social Security Fund (SSF) be diverted to private insurance companies for healthcare coverage of SSF members.

Surapong, who is also the deputy prime minister, said that this would benefit fund members who pay for the SSF but never use its medical-care services.

Healthcare is currently one of the seven SSF benefits to which fund members are entitled.

Surapong said many SSF members have bought medical coverage from private insurance companies while they already have similar insurance provided by the SSF.

"It is a huge waste," he said, adding that this had happened because some people were worried that the quality of medical services provided under the SSF scheme is not good.

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Tourism slump

Several major airlines, including Thai Airways International, are cutting long-haul flights to Thailand next year, in line with a forecast that there will be a 12-per-cent drop in the number of inbound tourists, the Association of Thai Travel Agents (ATTA) said.

ATTA president Apichart Sankary said although the Tourism Authority of Thailand has plans of seeing 17 million visitors next year, only 15 million may turn up.