Thailand: Inflation steady in October
November 2, 2017
Consumer prices in Thailand increased 0.16% over the previous month in October, down from a 0.58% increase in September. The rise in consumer prices was chiefly driven by higher prices for food and non-alcoholic beverages and non-food and beverages. The increase in consumer prices was sufficiently broad-based, as nearly all subgroups recorded higher prices in October.
Inflation was steady at the previous month’s result of 0.9% in October, slightly above market expectations of 0.8% inflation. As a result, inflation remained just below the lower band of the Central Bank’s 1.0%–4.0% target range for the eighth consecutive month. Core inflation, meanwhile, inched up for the first time in seven months in October to 0.6%. Despite inflation remaining below target, the Bank of Thailand is likely to keep its monetary policy unchanged when it meets on 8 November, as recent trade data indicates a fairly robust domestic market with economic activity picking up pace.
Author: Jan Lammersen, Economist