Price freeze agreed

Production costs have fallen due to declining oil prices.

The agreement came after a meeting yesterday between the ministry and consumer goods producers.

Manufacturers such as Saha Group, Colgate-Palmolive, P&G, PZ (Thailand) and Lion Corp (Thailand) said that they could better control production costs due to the lower oil prices. In addition, sales have improved thanks to the implementation of the government's six measures to boost the economy.

Commerce Minister Chaiya Sasomsap said the prices of more than 1,000 consumer goods items will be maintained rather than increased. This will help cap inflation at around 7 per cent to 8 per cent this year, he said.

The ministry is to approach producers from other sectors to maintain or lower their prices, Chaiya added.

The ministry confirmed that it had not allowed any price increases. Vegetable oil producers and dairy manufacturers earlier applied to raise their prices. Manufacturers are to be told that increased prices must reflect a rise in production costs.