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Thailand Steps Up Inflation Fight With Subsidies, Price Caps

  • Profit-sharing with energy firms mooted to fund fuel subsidies
  • Government may bring out fiscal bazooka at some point: Nomura
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Thailand is stepping up its battle against inflation by extending price caps on dozens of essential goods for another year and channeling a share of profit from oil refiners to fund energy subsidies for an extended period.

The government will continue controlling prices of more than four dozen essential goods and services such as rice, sugar, medicines, fertilizers and healthcare services until June next year, according to Commerce Minister Jurin Laksanawisit. A state price monitoring panel also ordered steps on movement of corn products to prevent a price surge, he said in a statement.