Thailand: Inflation rises slightly in March
April 3, 2012
In March, consumer prices rose 0.59% over the previous month, which was above the 0.37% increase observed in February. The monthly jump reflected higher prices for food and non-alcoholic beverages as well as for fuel. As a result of the monthly increase, annual headline inflation inched up from 3.3% in February to 3.4%, which overshot market expectations that had inflation moderating to 3.2%. The core inflation index, which strips out more volatile categories such as fresh food and fuels, added 0.33% over the previous month, up from the 0.11% rise in February. Consequently, annual core inflation rose from 2.7% in February to 2.8% in March, which moved closer to the upper limit of the Central Bank's 0.5%-3.0% target range. Annual average inflation remained stable at February's 3.9%. The Bank of Thailand expects inflation to average 3.4% this year.
Author: Ricardo Aceves, Senior Economist