Thailand: In April, inflation reaches Central Bank's target range for the first time in five months

In April, consumer prices in Thailand increased 0.45% over the previous month, contrasting the 0.09% drop in prices seen in March. The increase was driven by higher prices for virtually all sub-categories. Price increases in the food and non-alcoholic beverages, and non-food and beverages groups had the biggest impact on the consumer price index movement; prices for recreation and education were, meanwhile, unchanged.

Inflation in April increased to 1.1%, up from the prior month’s 0.8%. The result overshot market expectations and marked the first time in five months inflation was within the Bank of Thailand’s target range of 1.0%–4.0%. Core inflation, meanwhile, was unchanged at 0.6%.

Thailand Inflation Forecast

The Bank of Thailand now foresees inflation of 1.0% in 2018 and 1.2% in 2019. FocusEconomics Consensus Forecast panelists expect inflation to average 1.3% in 2018, which is down 0.1 percentage points from last month’s forecast. For 2019, panelists predict average inflation of 1.5%.