February inflation contracts 0.1%

 Inflation hit a 10-year high in mid-2008 at over 6 per cent, but has gradually declined and January saw the first contraction since October 1999, with the consumer price index contracting 0.4 per cent year-on-year.

 "The inflation rate decreased for two consecutive months as farm prices declined," said Commerce Permanent Secretary Siripol Yodmuangcharoen. He also attributed the fall to lower oil prices.

 However, compared to January, the consumer prices rose 1 per cent due partly to a rise in domestic fuel prices.