Thailand: Inflation remains below target at the outset of 2018
February 1, 2018
Consumer prices in Thailand increased 0.07% over the previous month in January, contrasting a 0.08% decrease in December. The marginal jump in consumer prices was chiefly driven by higher prices for non-food and beverages, and food and non-alcoholic beverages, as well as for transportation and communication, and housing and furnishing.
Inflation eased from 0.8% in December to 0.7% in January, slightly above market expectations of a stronger moderation. As a result, inflation remained below the Central Bank’s target range of 1.0%–4.0%. Core inflation, meanwhile, remained steady at the previous month’s 0.6% in January. As inflation has proved elusive during 2017 and at the start of the new year, it is expected that the Bank of Thailand will maintain its accommodative monetary policy at its 14 February meeting.
Thailand Inflation Forecast
The Bank of Thailand now sees inflation of 1.1% in 2018. FocusEconomics Consensus Forecast panelists expect inflation of 1.5% on average in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, panelists predict average inflation of 1.8%.
Author: Jan Lammersen, Economist