Thailand: Inflation eases in September

Thai consumer prices increased 0.29% over the previous month in September, up slightly from August’s 0.26% rise. The uptick in prices was broad-based, with all categories registering higher prices in September. Food and non-alcoholic beverages; transportation and communication; and energy recorded particularly sharp price rises.

Inflation, meanwhile, decreased to 1.3% in September from 1.6% in August, partly due to a less favorable base effect, but remained within Bank of Thailand’s 1.0%–4.0% target range. The figure was in line with market expectations. Lastly, core inflation, which excludes raw food and energy, remained stable for the fifth consecutive month at 0.8% in September.

Thailand Inflation Forecast

The Bank of Thailand sees inflation at 1.1% in 2018 and 1.2% in 2019. FocusEconomics Consensus Forecast panelists expect inflation to average 1.2% in 2018, which is unchanged from last month’s forecast. For 2019, panelists predict average inflation of 1.5%, also unchanged from last month’s forecast.