Thailand: Inflation reaches target range in November
December 1, 2017
Consumer prices in Thailand increased 0.07% over the previous month in November, down from a 0.16% increase in October. The marginal rise in consumer prices was chiefly driven by higher prices for non-food and alcoholic beverages, although nearly all subgroups recorded higher prices. These higher prices were almost offset by lower prices for food and non-alcoholic beverages.
Inflation inched up from 0.9% in October to 1.0% in November, in line with market expectations. Subsequently, inflation hit the lower band of the Central Bank’s 1.0%–4.0% target range for the first time in nine months. Core inflation, meanwhile, was steady at the previous month’s 0.6% in November. Although inflation returned to the target range, the Bank of Thailand is likely to keep its monetary policy unchanged at its 20 December meeting; trade data indicates a robust domestic market, with economic activity picking up pace.
Author: Jan Lammersen, Economist