Thailand
Thailand: Consumer prices dip for first time in 14 months
Annual headline consumer prices dropped in May for the first time in 14 months, due mainly to last year’s high comparative figure, government data showed on Thursday.
The fall gives the central bank room to keep interest rates low to aid economic recovery.
Headline consumer prices dipped 0.04% in May to stand at 100.64 points, compared with the 0.17% rise forecast in a Reuters poll.
The ministry said last year’s food prices were high because of drought. In April, the index rose 0.38% from a year earlier. The central bank targets headline inflation of 1-4%.
The core CPI index, which excludes raw food and energy prices, rose 0.46% in May from a year earlier, against a rise of 0.50% seen in the poll. In April, it was 0.50%.
Inflation in Thailand has been contained by state price controls, subsidies and sluggish domestic demand.
The Bank of Thailand has left its benchmark interest rate unchanged at 1.50%, near the record low, since a cut in April 2015. It next reviews monetary policy on July 5. Most economists expect no policy change through 2017.
Source: http://www.bangkokpost.com/business/news/1260476/consumer-prices-dip-for-first-time-in-14-months