The government is considering whether it needs to review the product price structure as oil prices continue to fall.
A vendor sorts cabbage from Chiang Mai for sale at Pak Khlong Market in Bangkok. Officials say consumer product prices should be lower, in line with falling oil prices. PATIPAT JANTHONG
Commerce Minister Chatchai Sarikulya said the Internal Trade Department had been assigned to study and closely monitor the consumer product price structure to ascertain if it was imperative to lower prices in the wake of falling global and domestic oil prices.
Oil prices generally account for 40% of the production costs of consumer products.
Boonyarit Kalayanamit, director-general of the Internal Trade Department, said the continuous decline in oil prices was expected to prompt large manufacturers to cut their prices.
"We believe most manufacturers are preparing to cut prices in light of the falling oil prices," he said.
"If they're still reluctant to cut prices to reflect lower production costs despite a substantial drop in oil prices, it is legitimate for the department to analyse the actual cost and take legal measures to deal with the issue."
Mr Boonyarit said since the prices of certain farm and livestock products such as pork, eggs and chicken had fallen to their lowest in a year thanks to higher supply, there was no reason for the prices of cooked food to be to raised.
Somchai Pornrattanacharoen, president of the Thai Retailers and Wholesalers Association, said falling oil prices would prompt manufacturers to put off raising prices until next year's first quarter.
Manufacturers had earlier planned to raise prices soon.
However, Mr Somchai said the likelihood of manufacturers and retailers increasing prices any time soon was slim, as consumers' purchasing power remained weak given the gloomy economic prospects and bearish farm prices.
The Kasikorn Research Center (K-Research) recently forecast economic growth of less than 1% this year due to sluggish exports and lacklustre domestic consumption, while next year's forecast of 4% remains an uphill challenge given the dubious state of the global economic recovery.
Finance Minister Sommai Phasee recently admitted the economy was likely to grow by less than 1% this year due largely to poor exports and delays in public spending.
Earlier, Deputy Prime Minister MR Pridiyathorn Devakula forecast fourth-quarter growth of 2.5% to 3%, which would mean full-year GDP of less than 1%.
K-Research predicts exports will contract by 0.1% this year, while base-case figures for economic growth and exports in 2015 are projected at 4% and 3.5%, respectively.
The National Economic and Social Development Board cut its growth forecast for this year to 1% after low third-quarter GDP growth of 0.6% year-on-year while predicting 3.5% to 4.5% next year.