BUSINESS NEWS:

Thai CPI hit new decade-high of 9.2% in July

Thai Consumer Price Index reached its new high in 10 years again last month while the central bank tries to assure the country that the current inflation rate is not too worrisome.

The Commerce Ministry reported today Consumer Price Index (CPI) hit a new 10-year high of 9.2% in July.

Thai CPI hit a decade-high level for three consecutive months.

And for the first seven months of 2008, local headline inflation rose 6.6% on-year.

Meanwhile core CPI which excludes volatile food and energy prices increased 3.7% in July when compared to the same month of 2007 or 0.2% on-month rise.

As of July 31th, the index also was 2.4% higher than the same period last year.

Commerce Ministry’s Deputy Permanent Secretary, Pairoh Sudsawang, said that a continued surge in oil price at the beginning of July attributed to a new high in Thai inflation.

She is also confident that prices would come down in August after the government has introduced a new set of economic stimulus measures to help ease the effects of inflationary pressure.

Meanwhile Bank of Thailand’s Senior Director, Amara Sriphayak, commented that July inflation rate is at an acceptable level as the index remained with expectations.

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Much-awaited, state-initiated free bus-train services kick off

Today is the first day that all new state economic stimulus measures take effect.

And one of the most-anticipated programs is the free transport service.

The state-initiated economic stimulus measures including the free service on Bangkok Mass Transit Authority (BMTA) buses came into effect before dawn this morning.

And while commuters on the planned 800 city buses have been satisfied with the service, many suggested that the government should extend the deadline of the program which is scheduled to end on January 31st, 2009.

Deputy Transport Minister, Songsak Thongsri, visited Victory Monument this morning to check on the debut of the free bus service and found that a number of commuters were not expecting to get a free ride as they were traveling during rush hours.

Songsak said that BMTA might increase the number of free buses during these hours and even consider extending the duration of the project which was initially set for six months.

Meanwhile rail stations nationwide have also been crowded today with travelers enjoying free service on the third-class, non-air-conditioned trains.

The State Railway of Thailand (SRT) reportedly said even though the number of train passengers have not been extraordinarily high today more people might board the free train during the weekend.

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Kbank CEO blames unclear politics for dull investment atmospheres

A prominent local banker is blaming unclear politics for lackluster investment in the country while hoping the new state economic team would successfully help revive the situation.

Kasikornbank CEO, Banthoon Lamsam, said that Thai economy is facing the biggest problem of political uncertainty that brought about dreary investment atmospheres.

Meanwhile high inflation also led to stricter loan considerations by all financial institutions, Banthoon stated.

He said that investors are waiting for an assurance that their investments would yield some fruits and such a confidence could only be derived from the government.

Banthoon added that many are waiting to see the faces of the new Cabinet line-up and the state economic team.

He also commented that it is too early to say former Deputy Prime Minister, Veerapong Ramangkul who is reportedly joining the government as the chief economic advisor would help solve the many problems the country is facing.

But he noted that what investors both local and foreign are counting on is more of the government’s economic policy.


SET MONITOR:

The local market wrapped the week with marginal gains led by buying into banking and property stocks.

The Stock Exchange of Thailand composite index added 2.3 points at 678.6 with thin volume worth less than 9 billion baht or about 268 million dollars.

Foreign investors were the only one that posted a net sell of more than a billion baht that’s almost 35 million dollars.

Meanwhile local institutions and retail investors registered the net buy of 635 and 534 million baht or 19 and 16 million dollars, respectively.

Thai share prices added 0.35% at Friday close following heavy buying into banking and property stocks while profit-taking in the energy sector eased.

Analysts said the SET index gained after prices have fallen considerably low in recent sessions.

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