Thailand: Inflation eases to lowest level in almost four years
May 3, 2013
In April, consumer prices added 0.16% over the previous month, which was up from the 0.07% rise recorded in March. The monthly reading reflects how higher prices for food and non-alcoholic beverages more than offset lower prices for transportation and communication.
Despite the monthly rise, annual headline inflation fell from 3.2% in March to 2.4% in April, which was slightly below the 2.5% expected by the market and represents the lowest level since November 2009.
The core inflation index, which excludes energy and fresh food prices, rose 0.06% over the previous month, which was above the virtually flat reading recorded in March. Meanwhile, annual core inflation was unchanged at the previous month's 2.1%. At the current level, core inflation remains well within the Central Bank's 0.5%-3.0% target range.
The Bank of Thailand projects inflation to average 3.4% this year, while the Commerce Ministry sees inflation fluctuating between 2.8% and 3.4%. FocusEconomics Consensus Forecast panellists anticipate inflation to average 3.3% in 2013, which is unchanged from last month's Consensus. For 2014, panellists see average inflation also at 3.3%.
Author: Armando Ciccarelli, Head of Data Solutions