Thailand: Inflation drops to lowest level in over three years
August 1, 2013
In July, consumer prices added 0.10% over the previous month, which was down from the 0.15% rise recorded in June. The monthly increase was driven by higher prices for transport and communication, which offset lower prices for food and non-alcoholic beverages.
Annual headline inflation fell from 2.3% in June to 2.0% in July, which was slightly below the 2.1% expected by the market and represents the lowest level seen since November 2009.
The core inflation index, which excludes energy and fresh food prices, was flat over the previous month, (June: +0.09% month-on-month). Annual core inflation remained steady at June's 0.9% rate. At the current level, core inflation remains at the lower end of the Central Bank's 0.5%-3.0% target range.
The Bank of Thailand projects inflation to average 2.3% this year and 2.6% in 2014. FocusEconomics Consensus Forecast panellists anticipate inflation to average 2.8% in 2013, which is down 0.1 percentage points from last month's Consensus. For 2014, panellists see average inflation at 3.1%.