Inflation in August fell to an annual rate of 6.4% due to falling world oil prices
and squeezed spending. The rate was down significantly from the 10-year high of 9.2% in
July.
''The drop is because of a sharp fall in oil prices, as well as a fall in utility prices
such as water, power and public transport,'' said Siripol Yodmuangcharoen, the permanent
secretary of the Commerce Ministry.
Inflation measured by the consumer price index (CPI) is based on a survey on prices of 374
products and services.
Prices in the food sector rose 1.7% in August due to rising vegetable and fruit prices,
while the non-food sector fell 6.2% because of falling world oil prices _ local fuel prices
fell 15% in August alone _ and the government's six-month anti-poverty package.
The package pushed water rates down 59.2%, while power costs fell 37.8%, public bus fares
went down 5.3%, and rail services dropped 59.2% last month.
Core inflation in August was 0.9% month-on-month and 2.7% over the same month last year.
The inflation rate for the first eight months was 6.7% mainly due to rising oil prices that
increased 32.5% over the period, and food prices that rose 9.9%.
Mr Siripol said the ministry had yet to revise its 2008 inflation projection from a range of
5.0% to 5.5% despite 6.7% average for the first eight months.
''Whether a revision is necessary depends on oil prices in the third quarter,'' he said..
''But we're confident inflation will not reach double digits for sure.''
Mr.Somphob Manarungsan, a Chulalongkorn University economist, said lower inflation in August
offered breathing space to the economy. But he suggested more stimulus measures were still
needed as oil prices were uncertain.
The local transport equipment specialist Panus Assembly Co is seeing success in its
new venture to build super tractors to tow the Airbus A380, the world's biggest passenger
plane.The Chon Buri company is building the tractors for the Australian engineering company Bliss
-Fox, a specialist in aviation ground support equipment (GSE).
Theerarat Juthamanee, Panus Assembly's senior executive in charge of GSE business, said the
company set up joint production facilities with Bliss Fox to build the tractors in Phanat
Nikhom. The line can produce five tractors per month using all Australian-designed parts produced
locally, except for diesel engines imported from Australia.
The F1-500 tow tractors used for the A380 weigh at least 70 tonnes and have specially
designed wheels and tyres. Six of the Thai-built units were delivered to four airlines last
year, two each to Qantas and Korean Airlines and one each to Singapore and Garuda airlines.
Another 10 tractors will be delivered to many airlines around the world including Japan this
year.
The first Thai-built tractor towed the first commercial flight of the A380 superjumbo by
Singapore Airlines at Sydney International Airport last year.
Mr Theerarat said Panus Assembly approached Bliss Fox in 2003 to manufacture aircraft towing
tractors to complete the company's GSE product line.
The Australian company was interested because it faced high production and labour costs at
home and received no tax privileges from its government, which made its products less
competitive. Bliss Fox decided on joint production facilities with Panus to take advantage of cheaper
costs and the free trade agreement between the two countries.
Panus builds the tractors but Bliss Fox handles the marketing worldwide.
Mr Theerarat said prospects for the GSE business were promising for the company, which has
been in the specialised field for the past five years.
