Thailand Inflation


Inflation stabilises in July

In July, consumer prices added 0.18% over the previous month, which was above the 0.13% increase observed in June. The monthly rise was mainly the result of higher prices for housing as well as for transport and communication. Annual headline inflation remained at the 4.1% observed in June, which fell slightly short of market expectations that had seen inflation rising to 4.2%. The core inflation index, which excludes more volatile categories such as fresh food and fuel moderated from a 0.18% rise in June to a 0.08% increase in July. Nevertheless, annual core inflation remained unchanged at June's 2.6%, which represented the highest level since August 2008. At the current level, core inflation remains within the Central Bank's target range of 0.5% - 3.0%. The Central Bank expects headline inflation will average 3.9% this year and 3.2% in 2012.

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