6-11-2023 (BANGKOK) The inflation rate in Thailand has experienced its first decline in 25 months, primarily attributed to falling energy prices resulting from government support measures and a decrease in food prices, as disclosed by the commerce ministry on Monday.
Thailand’s consumer price index (CPI) showed a 0.31 percent decline in October compared to the same period in the previous year. This contrasts with a 0.3 percent year-on-year increase in the preceding month, based on available data.
The observed figure deviates from the October forecast of 0.0 percent, as indicated in a Reuters poll. The core CPI, excluding volatile items, witnessed a 0.66 percent year-on-year increase in October.
Headline inflation has now remained below the central bank’s target range of 1 percent to 3 percent for the sixth consecutive month.
In the period spanning from January to October, the headline CPI exhibited an average increase of 1.60 percent compared to the corresponding period in the previous year. The core CPI experienced a rise of 1.41 percent during this timeframe.
The commerce ministry has maintained its projection for headline inflation, foreseeing it to be within the range of 1.0 percent to 1.7 percent for the year.
In an unexpected move in September, the Bank of Thailand’s monetary policy committee raised the key interest rate by a quarter point to 2.50 percent, marking the highest level in a decade. The central bank’s rationale for this decision was the anticipation of growth and inflation gaining momentum in the coming year. The bank is scheduled to review its monetary policy on November 29.
