Thailand: Inflation rises in February
March 4, 2014
In February, consumer prices rose 0.23% over the previous month, which was down from the 0.42% rise recorded in January. According to the Ministry of Commerce, February's increase was the result of a rise in prices for food and non-alcoholic beverages as well as for electricity, fuel and water supply.
Annual headline inflation rose from 1.9% in January to 2.0% in February. The result slightly overshot the 1.9% increase that markets had expected.
Core consumer prices, which exclude energy and fresh food prices, inched up from 0.21% in January to 0.27% in February. In addition, annual core inflation rose to 1.2% (January: 1.0%). 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