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He said on Thursday that the government's plan to spend Bt800 billion as part of the economic stimulus scheme would create both cash flow in the economic system and employment.

On Wednesday the Commerce Ministry's permanent-secretary Siripol Yodmuangcharoen said Thailand had not yet fallen into the deflation as the prices of some consumer items moved up during the month. He also anticipated inflation to swinging back to a positive

number in August. 

The ministry has maintained this year's inflation target at zero to 0.5 per cent, despite a 4-per-cent contraction year on year in June, the sharpest monthly fall since the 1997 financial crisis.