Thailand: Inflation inches up in January
February 5, 2014
In January, consumer prices rose 0.42% over the previous month, which was up from the 0.14% rise recorded in December. According to the Ministry of Commerce, January's increase was the result of a rise in prices for food and non-alcoholic beverages as well as for vehicles and vehicle operation.
Annual headline inflation rose from 1.7% in December to 1.9% in January. The result overshot the 1.8% increase that markets had expected.
The core consumer prices, which exclude energy and fresh food prices, rose from 0.1% in December to 0.2% in January. In addition, annual core inflation rose to 0.9% in January (December: 1.0%). Core inflation is still within the Central Bank's target range of 0.5%-3.0%.
The Bank of Thailand projects that inflation will average 2.4% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 2.8% in 2014, which is down 0.1 percentage points from last month's Consensus. For 2015, panelists see average inflation at 3.1%.
Author: Dirina Mançellari, Senior Economist