Thailand: Inflation picks up in April
May 5, 2014
In April, consumer prices rose 0.50% over the previous month, which was up from the 0.22% increase tallied in March. According to the Ministry of Commerce, April's rise was the result of an increase in prices for food and non-alcoholic beverages as well as for transportation and communication.
Annual headline inflation rose from 2.1% in March to 2.5% in April. The result overshot the 2.3% the market had expected.
Core consumer prices, which exclude energy and fresh food prices, rose 0.40% over the previous month (March: +0.08% month-on-month). In addition, annual core inflation rose to 1.7% (March: +1.3%). 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