Thailand: Inflation slows down for second straight month
March 4, 2013
In February, consumer prices added 0.21% over the previous month, which was up from the 0.16% rise recorded in January. The increase primarily reflected higher prices for transportation and communication as well as for prepared food. Despite the monthly rise, annual headline inflation moderated to 3.2% in February (January: 3.4%), which was below the 3.3% expected by the markets.
The core inflation index, which excludes energy and fresh food prices, added 0.09% over the previous month, which was broadly in line with the 0.08% rise recorded in January. Meanwhile, annual core inflation was unchanged at January's 1.6%. At the current level, core inflation remains well within the Central Bank's 0.5%-3.0% target range.
The Bank of Thailand projects inflation to average 3.4% this year, while the Commerce Ministry sees inflation fluctuating between 2.8% and 3.4%. FocusEconomics Consensus Forecast panellists anticipate inflation to average 3.3% in 2013, which is unchanged from last month's Consensus. For 2014, panellists see average inflation also at 3.3%.
Author: Armando Ciccarelli, Head of Data Solutions