Thailand: Inflation falls in November
December 4, 2012
In November, consumer prices dropped 0.35% over the previous month, which contrasted 0.13% increase observed in October and marks the first monthly decline since December 2011. The reading reflected lower prices for food and non-alcoholic beverages as well as for transport and communications. Consequently, annual inflation fell to 2.7% in November from 3.3% in October, exceeding market expectations that had inflation at 3.2%.
The core inflation index, which excludes energy and fresh food prices, added 0.05% over the previous month, which was slightly up from the 0.02% rise recorded in October, driving annual core inflation to 1.9% in November (October: 1.8% yoy). At the current level, core inflation remains well within the Central Bank's 0.5%-3.0% target range. Annual average inflation continues its downward trajectory, inching down from 3.1% in October to 3.0% in November, its lowest level since September 2010.
Author: Ricardo Aceves, Senior Economist