A World Bank economist in Thailand is warning even if tensions ease in the Middle East, oil prices will remain high due to high demand from China, India and other industrialized countries.

High oil and commodity prices are contributing to inflation, which is now seen as a key concern in Thailand and throughout the region.

In a monitoring report on the Thai economy, the World Bank says global oil prices, now near $110 a barrel, combined with inflation, pose a threat to the global economic recovery.