Thailand: Inflation moderates in August
September 2, 2014
In August, consumer prices fell 0.08% over the previous month, which met the 0.08% decrease tallied in July. According to the Ministry of Commerce, August’s decline resulted from lower prices for food and non-alcoholic beverages, as well as for vehicles and vehicle operation.
Annual headline inflation inched down from 2.2% in July to 2.1% in August, which marked the lowest rate in six months. The result undershot market expectations of the inflation rate inching up to 2.3%. The drop in the inflation rate reflects the effort of the military junta to keep prices under control in order to preserve purchasing power and support private consumption.
Core consumer prices, which exclude prices for energy and fresh food prices, rose 0.09% over the previous month (July: +0.10% month-on-month). In addition, annual core inflation was stable at July’s 1.8%, which marks the highest rate since November 2012. Core inflation is still within the Central Bank’s target range of 0.5%–3.0%.
Author: Dirina Mançellari, Senior Economist