Thailand: Inflation eases in December
January 3, 2014
In December, consumer prices rose 0.14% over the previous month, which was up from the 0.09% rise recorded in November. According to the Ministry of Commerce, December's increase was the result of a rise in prices for food and non-alcoholic beverages, as well as for housing and furnishing.
Annual headline inflation decreased from 1.9% in November to 1.7% in December. The result undershot the 1.8% that markets had expected.
The core inflation index, which excludes energy and fresh food prices, inched down from 0.2% in November to 0.1% in December. In addition, annual core inflation was stable at November's 0.9%. Core inflation is still within the Central Bank's target range of 0.5%-3.0%.
The Bank of Thailand projects that inflation will average 2.4% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 2.8% in 2014, which is down 0.1 percentage points from last month's Consensus. For 2015, panelists see average inflation at 3.1%.
Author: Dirina Mançellari, Senior Economist