Inflation in Thailand
Thailand - Inflation
Inflation accelerates in July
In July, consumer prices decreased 0.13% in monthly terms, the lowest reading in four months (June: +0.02 month-on-month). The drop was driven by lower prices for food and non-alcoholic beverages, transportation and communication, as well as raw food and energy which offset higher prices for subcategories such as recreation and education, and apparel and footwear. Core consumer prices, excluding energy and fresh food, were steady at the previous month’s 0.08% increase–the highest print in 13 months.
Inflation came in at 0.2% in July, contrasting the previous month’s 0.1% fall in consumer prices. Although inflation returned in July, it remains far below the Central Bank’s target range on 1.0%-4.0% for the fifth consecutive month. Inflation has been confined due to state price controls, sluggish domestic demand and subsidies. Moreover, July’s results gave the Central Bank room to keep its interest rates low at its next monetary policy meeting scheduled for 16 August: and analysts are not expecting a change to the interest rate. Furthermore, core inflation was also steady at June’s print of 0.5%.
The Bank of Thailand foresees inflation of 0.8% in 2017 and 1.6% in 2018. FocusEconomics Consensus Forecast panelists expect inflation of 1.0% on average in 2017, which is down 0.2 percentage points from last month’s forecast. For 2018, panelists predict average inflation of 1.6%.
Thailand - Inflation Data
|Inflation Rate (CPI, annual variation in %)||3.0||2.2||1.9||-0.9||0.2|
5 years of economic forecasts for more than 30 economic indicators.
Thailand Inflation Chart
Source: Bureau of Trade and Economics and FocusEconomics calculations.
|Bond Yield||2.41||-1.63 %||Aug 17|
|Exchange Rate||33.21||-0.13 %||Aug 17|
|Stock Market||1,569||0.09 %||Aug 17|
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August 16, 2017
At its 16 August monetary policy meeting, the Bank of Thailand (BoT) unanimously decided to keep the one-day repurchase rate at 1.50%, where it has been for over two years.
August 2, 2017
In July, consumer prices decreased 0.13% in monthly terms, the lowest reading in four months (June: +0.02 month-on-month).
July 29, 2017
Following an increase in industrial output in the previous month, Thai manufacturing output decreased unexpectedly, defying market analysts’ expectations.
July 20, 2017
Thailand’s external sector continued to defy analysts’ worries that a strong baht could have a negative effect on its performance.
July 3, 2017
Consumer price growth in June came in barely above the zero percent mark, registering a 0.02% increase on a month-on-month basis, following the previous month’s 0.15% increase.