Thailand: Consumer prices in February record largest drop in over five years
March 3, 2015
In February, consumer prices rose 0.12% over the previous month, which contrasted the 0.59% decrease seen in January and marked the fastest increase in nine months. According to the Ministry of Commerce, February’s increase mainly resulted from lower prices for food and non-alcoholic beverages.
Consumer prices fell 0.5% over the same month last year, which followed January’s 0.4% drop and marked the fastest decrease since September 2009. The result was below the 0.3% drop the market had expected. As a consequence, annual inflation is well below the Bank’s tolerance margin of plus/minus 1.5 percentage points around its target of 2.5%. Core consumer prices, which exclude prices for energy and fresh food, rose a weak 0.09% over the previous month (January:+0.16% month-on-month). Annual core inflation inched down from 1.6% in January to 1.5% in February and now stands at its lowest level since March 2014.
Author: Dirina Mançellari, Senior Economist