NESDB: No signs of deflation despite negative inflation rate

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BANGKOK, 17 Feb 2015 – According to the Office of the National Economic and Social Development Board (NESDB), there is no sign of deflation despite the minus 0.41% inflation rate last month, as the economic growth continues to show positive prospects.

NESDB Secretary-General Arkom Termpittayapisit yesterday said that the Government would implement appropriate monetary measures, such as benchmark rate adjustment, to prevent deflation, should the situation calls for such an intervention.

He said at the moment there is no need for the measure, but stated that close monitoring is mandatory.

Mr. Arkom said, to determine whether the nation is facing deflation, 2 major factors have to be considered — inflation rate and economic growth. The Secretary-General said the lack of spending and money in the system would cause deflation. He pointed out that the Kingdom’s economy was expanding steadily, thus deflation was unlikely at the moment.