Thailand: Consumer prices in May record largest drop in nearly six years
June 3, 2015
In May, consumer prices rose 0.17% over the previous month, which followed the 0.02% increase observed in April. According to the Ministry of Commerce, May’s increase mainly resulted from higher prices for food and non-alcoholic beverages.
Consumer prices fell 1.3% over the same month last year, which followed April’s 1.0% drop and marked the fastest decrease since July 2009. As a consequence, inflation is well below the Central 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 0.05% over the previous month (April: 0.11% month-on-month). Annual core inflation inched down from 1.6% in April to 1.5% in May, the lowest level in six months.
Author: Dirina Mançellari, Senior Economist