Thailand: Inflation edges up in August

Consumer prices increased 0.26% over the previous month in August, contrasting July’s 0.05% decrease. August’s print was primarily driven by higher prices for food and non-alcoholic beverages; transport and communication; non-food and beverages; and raw food and energy.

Inflation picked up to 1.6% in August from 1.5% in July, moving closer to the midpoint of the Bank of Thailand’s 1.0%–4.0% target range. August’s result slightly overshot market expectations of 1.5% and marked the highest print in nearly four years. Lastly, core inflation, which excludes raw food and energy, remained stable at the prior month’s reading of 0.8% in August.

Thaliand 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 down 0.1 percentage points from last month’s forecast. For 2019, panelists predict average inflation of 1.5%.