Thailand
Thailand: Headline inflation lowest in 21 months
Thailand’s headline inflation rate dropped to its lowest in 21 months in May due to falling energy and food prices and a high base in 2022, the Commerce Ministry said on Tuesday.
The headline consumer price index (CPI) rose 0.53% in May from a year earlier, below a forecast rise of 1.70% in a Reuters poll, and against April’s 2.67% year-on-year increase.
The core CPI index in May rose 1.55% from a year ago, below a forecast increase of 1.6%, and against April’s 1.66% rise.
It was the third month in a row that headline inflation came in within the Bank of Thailand’s (BoT) target range of 1% to 3%.
Headline inflation will further slow in May and contract in June, Trade Policy and Strategy Office (TPSO) deputy director-general Wichanun Niwatjinda told a press conference.
Falling goods and energy prices combined with a higher base last year attributed to the decline, Mr Wichanun added.
The Commerce Ministry forecast average headline inflation at between 1.7% and 2.7% for this year.
In the January-May period, annual headline inflation was 2.96%, with the core rate at 1.98%, the ministry said.
Last week, the BoT raised its policy interest rate by a quarter point to 2%, citing core inflation remained elevated. It will next review the rate on Aug 2.
Source: https://www.bangkokpost.com/business/2586075/thailands-headline-inflation-in-may-lowest-in-21-months