Thailand: Inflation picks up pace in August
September 2, 2017
Consumer prices increased 0.11% month-on-month in August, contrasting last month’s decrease (July: -0.13% month-on-month). August’s print was driven by higher prices for transportation and communication, raw food and energy, and apparel and footwear, which offset lower prices for food and non-alcoholic beverages and medical and personal care. Core consumer price inflation, which excludes energy and fresh food, came in at 0.05%, which is slightly below last month’s reading of 0.08%.
Inflation rose to 0.3% in August from 0.2% in July. Although it climbed again, inflation is far below the Central Bank’s target range of 1.0%–4.0% for the sixth consecutive month. Furthermore, core inflation remained steady for the fifth consecutive month at 0.5%. While trade data indicates a fairly robust domestic market, subsidies and state price controls have confined inflation. August’s result should allow the Central Bank to keep interest rates low at its next policy meeting scheduled for 27 September.
Author: Jan Lammersen, Economist