Deflation is sweeping South East Asia: Thailand, South Korea see CPI decreases.

The deflationary forces of the collapsing credit are putting pressure on Consumer Price Index measures throughout the whole world. Fresh evidence of deflation in Asian countries:

Thai CPI falls record annual 4.0 pct in June

BANGKOK, July 1 (Reuters) – Thai consumer prices in June fell a record 4.0 percent from a year earlier, much as expected, but the trend is due in large part to high oil prices this time last year and economists are not worried about demand-led deflation.

June’s fall was the biggest since the authorities began compiling monthly inflation data in 1976, but analysts expect the trend to turn around quickly after July, again due to oil price moves over the past year. Prices rose 0.4 percent from May.

S.Korea June CPI growth at 22-mth low of 2.0 pct

SEOUL, July 1 (Reuters) – South Korean consumer prices in June rose 2.0 percent from a year earlier, lower than market expectations and marking the slowest annual pace in 22 months, government data showed on Wednesday.

The median forecast in a Reuters poll had been for the consumer price index (CPI) to rise 2.3 percent from a year earlier following a 2.7 percent rise in May.

The consumer price index in June fell 0.1 percent from May, the first fall since November 2008, the data showed.

The monthly reading is not adjusted for seasonal patterns.

The annual rate of core inflation, which strips out volatile food and fuel prices, was 3.5 percent in June, compared with 3.9 percent in May, the National Statistical Office data showed.


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