Thai leading business moguls are beginning to voice their concerns over the current rate of inflation that was predicted to reach the double-digit level.

According to former deputy Prime Minister Virabongsa Ramangkura, with the oil price stays at $150 a barrel level, rising of inflation has crushed all the industries’ revenues and depletion in supply is also likely as small enterprises drastically struggle to survive.

“I believe that the inflation will continue to rise and stay at the double-digit figure for years to come,” Mr. Virabongsa said. “It might be ten per cent or slightly above.”

Pornwut Sarasin, vice president of Thai Namthip, a local maker of Coca-Cola, remarked that higher inflation has compelled businesses to embark restructuring in order to cope with higher materials and operation costs.

“It’ll be no good for striving companies, which would need to cut cost,” he said. “We have seen that airlines had already grounded flights.”

“The soft drink industry was hit hard by higher prices of sugar and transportation,” Mr. Pornwut added—referring to materials and transportation prices that are highly influenced by inflation.

The price of sugar went up by 38 per cent year on year.

However, Tos Chirathivat, CEO of Central Retail Corp viewed inflation at the different angle.

“My feeling is that inflation is better than deflation,” he said.  “I agreed with the rise of agriculture products prices, which would yield great benefit to farmers.”

Thai conglomerate Saha Group’s chairman Boonsithi Chokwattana commented that the government mismanagement by raising the interest rate to fight inflation has pushed up costs and undermined the buying powers.

“I will be happy if we can achieve a growth of 5 or 6 per cent this year,” he concluded.