Thailand: Headline inflation falls less than expected in December

Thailand’s headline consumer price index (CPI) in December dropped a less than expected 0.27% from a year earlier, the commerce ministry said on Tuesday.

That compared with the forecast for a 0.40% fall in a Reuters poll and followed November’s 0.41% decline.

The core CPI index rose 0.19% from a year earlier, compared with a forecast of a 0.17% rise.

In 2020, the headline CPI fell 0.85% while the core CPI rose 0.29%.

Consumer prices decreased less than expected in December because of higher prices of raw food, especially for vegetables, fruits and meats, as demand increased. 

The supply of several agricultural products was limited by natural disasters, while base prices were low. Prices of seasonings and condiments rose after promotional campaigns. 

Energy prices recovered from the previous month, although they still fell year-on-year, with fuel showing particular weakness. Public transportation fares and toll fees dropped due to government measures. 

Prices of rice and flour products continued falling.

Leaving food and energy prices out of the calculations, core inflation actually rose 0.19% year-on-year. 

Source: https://www.bangkokpost.com/business/2045903/headline-inflation-falls-less-than-expected-in-december