Everybody knows that the inflation in Asia is climbing so fast. The economic problems that we face continue to dwell before us as if there ’s really no signs of recovery seen so far. We all have to worry about this continuing increase or rise in inflation as well as the risk of economic slowdown in any way as they significantly affect our lives and our lifestyles. Thailand has not been spared either with a reported inflation rate of its record highest level of 8.9% in 10yrs while the GDP growth declined in 2007. All these including the decrease in exports mean that we may now be entering the global stagflation era, which is a period of slowing economic growth with an accelerated inflation. It does sound so scary, isn’t it? How much more difficult is it for the low wage earners and the unemployed? It’s devastating to note that we are in this seemingly hopeless economic situation. Stagflation is a rather more explosive description of a certain economic condition (’stag’ for stagnation meaning getting worse, ‘flation’ for inflation meaning heating up) where it is mostly associated with negative supply shock, i.e. rising oil prices, or cost-push inflation. What is also scary is when deflation strikes where if inflation distributes unevenly among the sectors. This dilemma can occur in situations like having a deflation in the housing sector but inflation in the goods and services sector. We really don’t have much choice, do we?