Thailand: Inflation drops below target in February
Thai consumer prices fell 0.08% month-on-month in February, contrasting the 0.16% increase in January. The print reflected lower prices for transportation and communication, which more than offset a rise in the price levels of food and non-alcoholic beverages; prepared food; and housing and furnishing.
Meanwhile, inflation moderated to 0.7% in February from 1.1% in the prior month, falling below the Bank of Thailand’s 1.0%–3.0% target range. Annual average inflation was stable at January’s 0.8% in February, while core inflation, which excludes raw food and energy, edged up to 0.6% from 0.5%.
Looking ahead, inflation is expected to average below the Central Bank’s target range this year. Low inflation, coupled with the effects of the coronavirus outbreak on domestic economic activity, could prompt the Central Bank to ease monetary policy further in 2020.