Thailand: Inflation falls back below target range in December
Consumer prices in Thailand decreased 0.08% over the previous month in December, contrasting a 0.07% increase in November. The marginal drop in consumer prices was chiefly driven by lower prices for food and non-alcoholic beverages, and raw food and energy.
Inflation eased from 1.0% in November to 0.8% in December, below market expectations of a stable reading. As a result, inflation came in below the Central Bank’s target range of 1.0%–4.0%, where it had been for most of 2017. Core inflation, meanwhile, remained steady at the previous month’s 0.6% in December. The Bank of Thailand is likely to maintain its accommodative monetary policy at its 14 February meeting; inflation has proved elusive over the past year despite a pick-up in the domestic economy.