Thailand: Inflation inches up in March
April 2, 2014
In March, consumer prices rose 0.22% over the previous month, which was virtually unchanged from the 0.23% increase observed in February. According to the Ministry of Commerce, March's increase was the result of a rise in prices for food and non-alcoholic beverages as well as for transportation and communication.
Annual headline inflation inched up from 2.0% in February to 2.1% in March. The result was on par with market expectations.
Core consumer prices, which exclude energy and fresh food prices, fell slightly from 0.27% in February to 0.08% in March. In addition, annual core inflation inched up to 1.3% (February: 1.2%). 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