Thailand Inflation


Inflation eases slightly in February

In February, consumer prices rose 0.37% over the previous month, which was virtually unchanged from the 0.39% increase observed in January. The monthly increase reflected higher prices for food and beverages as well as for energy. Annual headline inflation edged down from 3.4% in January to 3.3% in February, which was in line with market expectations. The annual reading marked the lowest level since March 2011. The core inflation index, which strips out more volatile categories such as unprocessed food and fuels, rose 0.11% over the previous month, which was below the 0.26% increase tallied in January. Annual core inflation was unchanged at January's 2.7%, and therefore remains within the Central Bank's 0.5%-3.0% target range. The Bank of Thailand expects inflation to average 3.2% this year, before moderating to 2.9% in 2013.

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