Thailand: Inflation eases further in May
June 3, 2013
In May, consumer prices added 0.24% over the previous month, which was up from the 0.16% rise recorded in April. The monthly increase was driven by higher prices for food and non-alcoholic beverages as well as for apparel and footwear.
Despite the monthly rise, annual headline inflation inched down from 2.4% in April to 2.3% in May, which was slightly below the 2.4% expected by the market and represents the lowest level seen since November 2009.
The core inflation index, which excludes energy and fresh food prices, rose 0.05% over the previous month, which was virtually in line with the 0.06% increase recorded in April. Meanwhile, annual core inflation fell from 1.2% in April to 0.9% in May. At the current level, core inflation still remains 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