Thailand: Inflation rises slightly in June
July 2, 2012
In June, consumer prices added 0.16% over the previous month, which was below the 0.39% rise observed in May. The monthly increase reflected higher energy prices, which were partially offset by lower prices for food and non-alcoholic beverages. As a result of the monthly rise, annual headline inflation edged up from 2.5% in May to 2.6% in June, which overshot market expectations that had inflation remaining stable at 2.5%. The core inflation index, which excludes more volatile categories such as fresh food and fuel, rose 0.15% over the previous month, below the 0.29% increase observed in May. Annual core inflation inched down from 2.0% in May to 1.9% in June, thereby remaining well below the upper limit of the Central Bank's 0.5%-3.0% target range. Annual average inflation inched down from 3.6% in May to 3.5% in June. The Bank of Thailand cut its inflation projections for this year and now expects it to average 3.3% this year, down from its previous 3.5% estimate. The Bank cited lower global commodities prices, amid slower global economic activity.
Author: Ricardo Aceves, Senior Economist