Key Takeaways
- Thailand’s headline consumer price index increased 2.53% year-on-year in August.
- The core CPI rose 1.44% year-on-year, close to the forecasted increase.
- The Bank of Thailand maintains its full-year inflation forecast of 1.5% to 2.5%.
Thailand’s headline consumer price index (CPI) increased by 2.53% year-on-year in August, surpassing the forecasted rise of 2.37% according to a Reuters poll. This follows an increase of 1.95% in July. The central bank’s target inflation range is set between 1% and 3%, and the current reading is within this range.
The core CPI, which excludes volatile energy and fresh food prices, saw a rise of 1.44% year-on-year, closely matching the 1.39% forecasted in the poll. Nantapong Chiralerspong, head of the Trade Policy and Strategy Office, stated that headline CPI is expected to continue rising in the coming months.
The Bank of Thailand Governor, Vitai Ratanakorn, has indicated that monetary policy remains fully accommodative and appropriate for the current economic conditions. The central bank left its key interest rate unchanged at 1.00% in September, citing low and uneven economic growth. The next rate meeting is scheduled for October 28.
Despite the rise in inflation, the Bank of Thailand’s full-year inflation forecast remains unchanged at 1.5% to 2.5%. The third quarter is expected to see headline inflation at 2.37%, with the final quarter projected to reach 2.70%. Thai consumer confidence has fallen for the third consecutive month in May, reflecting concerns over economic stability.
Nantapong Chiralerspong further noted that the ministry maintains its full-year inflation forecast, indicating a cautious approach to economic management. The central bank’s decision to keep interest rates unchanged suggests a focus on supporting economic growth amid current challenges.
