In October, consumer prices added 0.19% over the previous month, which contrasted the revised 0.33% drop registered in September (previously reported: -0.32% month-on-month). The monthly rise reflected higher prices for fresh food, particularly for rice (+0.63 mom), as the devastating floods have damaged large swathes of agricultural land. Owing to the monthly rise, annual headline inflation rose from 4.0% in September to 4.2% in October. The reading, nevertheless, fell short of market expectations that had inflation rising to 4.5%. The core inflation index, which smoothes more volatile categories such as fresh food and fuel, added only 0.07% over the previous month (September: 0.10% mom), driving annual core inflation to 2.9% in October, where it now sits a notch below the Central Bank's upper-target range of between 0.5% and 3.0%. Around 10% of the current rice harvest has been damaged by the floods and local rice traders have estimated that rice prices will rise 20% to 25%, which could add between 0.4 to 0.5 percentage points to headline inflation. However, on the back of lower pressures from global commodity prices, the Central Bank revised its inflation forecast for this year and now expects it to average 3.8%, slightly down from its previous 3.9% estimate. For 2012, the Bank expects inflation to average 3.5%, which is up from its previous 3.2% projection.
Inflation rises in October after farmland suffers flood damage
November 2, 2011
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Thailand Economic News
October 17, 2016
On 13 October, Thailand’s beloved King Bhumibol Adulyadej died after a 70-year reign and his successor, Crown Prince Maha Vajiralongkorn, has declared his wish to wait until he ascends the throne.
October 4, 2016
In September, consumer prices inched up 0.04% from the previous month, which contrasted the 0.04% decrease observed in August and overshot market expectations of a 0.1% increase.
September 30, 2016
In August, the trade balance recorded a USD 2.1 billion surplus, which was above the USD 0.7 billion surplus observed in the same month of the previous year and was also higher than the USD 0.8 billion surplus registered in July.
September 30, 2016
In August, manufacturing production increased 3.1% over the same month last year, which was a sharp upswing from the 5.0% contraction seen in July and marked the highest reading in over three years.
September 14, 2016
At its 14 September monetary policy meeting, the Bank of Thailand (BoT) decided unanimously to keep the one-day repurchase rate at 1.50% as the markets had expected. In its press release, the Bank commented that the Thai economy had accelerated in the second quarter on the back of strong private consumption and resilient public expenditure.