With tumbling oil prices expected to bolster private consumption, last month’s contraction in consumption came as a surprise, says a senior Bank of Thailand official.
The high level of household debt and falling farm prices were to blame, said Roong Mallikamas, senior director for macroeconomic and monetary policy. She said the fall in private consumption was unexpected and signified the slow pace of consumption recovery.
The private consumption index declined by 1.5 percent year-on-year last month, worse than December’s contraction of 0.8 percent.
