June inflation contracts 4%

 Still,Commerce Permanent Secretary insisted that Thailand has not yet fallen into deflation as the prices of some consumer product items moved up. He also anticipated the inflation to swing back to the positive area in August.

 Compared to May, the June inflation rose 0.4 per cent. Inflation in the first six months of this year contracted 1.6 per cent on year, due to the drop in energy, electricity and water bills as well as the prices of textiles, garments, food and beverages.

 "Though this represents the sixth consecutive month of contraction, we don't expect deflation as some items still witnessed a price hike. Coupled with the economic stimulus measures, Thailand should not head towards deflation," Siripol said.