Thailand Inflation September 2017


Thailand: Inflation jumps in September

October 9, 2017

Consumer prices in Thailand increased 0.58% over the previous month in September, up from 0.11% in August. The increase in consumer prices was chiefly driven by higher prices for non-food and beverages, food and non-alcoholic beverages, raw food and energy and housing and furnishing. The increase in prices was broad-based, as all subgroups recorded higher prices in September compared to the prior month.

Inflation rose from 0.3% in August to 0.9% in September, coming in above market expectations of a more modest reading of 0.5%. As a result, inflation approached the lower band of the Central Bank’s 1.0%–4.0% target range, but nevertheless remained below the target for the seventh consecutive month. Core inflation, meanwhile, remained steady for the sixth consecutive month at 0.5%. While subsidies and state price controls have limited inflation, recent trade data indicates a fairly robust domestic market with economic activity picking up. However, as inflation remains below target, the Bank of Thailand is likely to keep the monetary policy unchanged when it meets on 8 November.

The Bank of Thailand now foresees inflation of 0.6% in 2017 and 1.2% in 2018. FocusEconomics Consensus Forecast panelists expect inflation of 0.8% on average in 2017, which is down 0.1 percentage points from last month’s forecast. For 2018, panelists predict average inflation of 1.5%, which is unchanged from last month’s estimate.

Author:, Economist

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Thailand Inflation Chart

Thailand Inflation September 2017

Note: Annual and monthly variation of consumer price index in %.
Source: Ministry of Commerce and FocusEconomics calculations.

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