Thailand: Inflationary pressure declines in October
November 2, 2012
In October, consumer prices added 0.13% over the previous month, which came in below the 0.34% increase recorded in September and marks, in fact, the lowest reading in ten months. As a result, annual headline inflation inched down from 3.4% in September to 3.3% in October. The core inflation index, which excludes energy and fresh food prices, rose 0.02% over the previous month, which marks the lowest reading in over two years and is far below the 0.23% recorded in September. As a result, annual core inflation moderated to 1.8% in October (September: +1.9% year-on-year). At the current level, core inflation remains well within the Central Bank's 0.5%-3.0% target range. Annual average inflation continues its downward trajectory, inching down from 3.2% in September to 3.1% in October, its lowest level since March 2011. The Bank of Thailand projects inflation to average 2.9% this year and 3.4% in 2013.
Author: Ricardo Aceves, Senior Economist