Thailand announced early on Tuesday that their price level had fallen year on year at -1.27% – the fifth consecutive month of deflation in the country. This caused the Thai Baht to deprecate over 0.83% against sterling throughout the rest of the day, and is a particular concern to the Thai government; if this deflation continues, they could see a major reduction in aggregate demand. However, the government remain positive, and insist this is merely a result of the reduced cost of oil, rather than poor fundamentals within the economy.
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