Thailand’s Inflation Surprises With Slowest Growth In 22 Months, Consumer Price Forecasts Revised

(CTN NEWS) – Thailand experienced an unexpected increase in annual headline inflation in June, albeit at the slowest rate in 22 months.

The country’s commerce ministry, however, revised its forecast for consumer price rises for the entire year.

In June, the headline consumer price index (CPI) rose by 0.23% compared to the same period last year.

This result contradicted a Reuters poll that had predicted a 0.1% decline and marked a slowdown from the 0.53% year-on-year rise recorded in May.

Headline inflation: June CPI Defies Expectations, Registers 0.23% Year-on-Year Increase

The deceleration in headline inflation was attributed to lower food and energy prices, as well as a high base from the previous year.

These factors are expected to continue contributing to the moderation of consumer prices, according to the ministry.

This is the second consecutive month in which the headline CPI fell below the central bank’s target range of 1% to 3%.

Thailand’s Core CPI Rises 1.32% YoY in June

Meanwhile, the core CPI, which excludes volatile food and energy prices, increased by 1.32% year-on-year in June, slightly lower than the 1.4% rise forecasted in the poll.

A ministry official stated during a briefing that Thailand has comparatively low inflation when compared to other countries.

The ministry projects a year-on-year increase of 0.77% in the headline CPI for the third quarter and 0.62% for the final quarter of the year.

As a result, the full-year inflation forecast has been revised to be between 1% and 2%, down from the previous projection of 1.7% to 2.7%.

For the January-June period, annual headline inflation stood at 2.49%, while the core rate was at 1.87%.

In May, the Bank of Thailand raised its policy interest rate by a quarter point to 2%. The next policy review is scheduled for August 2, with some economists expecting no rate change, while others anticipate a further hike.

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