Thailand: Consumer prices record largest drop in over five years
January 5, 2015
In January, consumer prices fell 0.59% over the previous month, which followed the 0.50% decrease tallied in December and marked the steepest fall since December 2008. According to the Ministry of Commerce, January’s decline resulted from lower prices for food and non-alcoholic beverages, as well as for transportation.
Consumer prices fell 0.4% over the same month last year, which contrasted the 0.6% increase observed last month. The result significantly contrasted the 0.3% increase the market had expected and marked the largest drop since September 2009. 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 0.16% over the previous month (December:+0.18% month-on-month). Annual core inflation inched down from 1.7% in December to 1.6% in January.
Author: Dirina Mançellari, Senior Economist