Export ban may be used to curb inflation

The ministry has drawn up three scenarios.

At worst it will cap prices of essential products and profit margins, ban exports and allow import of cheaper goods to compete with domestic products.

This will kick in when diesel hits Bt36-Bt37 a litre and inflation passes 7 per cent per annum.

Yangyong said price controls would be graded to ensure minimum discomfort to consumers. The first controls will take effect when inflation reaches 6-6.5 per cent and diesel Bt33-Bt34.

In the first half of this year, inflation was 6.3 per cent and diesel oil averaged Bt33.

Intermediate controls will come with inflation at 6.5-7 per cent and diesel at Bt34-Bt35.

Two hundred consumer products are already on the ministry's watch list, and 35 necessities are subject to ministry price controls as a buffer against skyrocketing oil and commodity prices.

Yangyong said measures would not be so stringent as to seriously inconvenience manufacturers and the ministry would liaise with other government bodies to ease production infrastructure costs.