Academics called for no extension of state-initiated consumer goods price control

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BANGKOK, 20 June 2012  – Academics are urging the government not to extend the policy to cap consumer goods prices and let everything move in accordance with market mechanism.

The University of Thai Chamber of Commerce (UTCC)’s Economic and Business Forecasting Center director Thanavath Phonvichai said on Tuesday that the government should not continue the cap of consumer goods prices, after it expires in September.

Mr. Thanavath stated that local prices have been stable for some time, while some have begun dropping, due to the state-initiated price cap policy and falling fuel prices.

While suggesting that such circumstances reflected the government’s success in reining in the problem of rising cost of living, he said that it should not consider renewing the policy and allow entrepreneurs to adjust their prices in accordance with their real costs.

In addition, Mr. Thanavath said that the UTCC is now predicting an average inflation of 2.4-2.5 percent from now until September, while pegging this year’s consumer price index at between 3.2 and 3.8 percent, which is in line with the Commerce Ministry’s expected range.