Thailand: Inflation hits four-month high
August 1, 2012
In July, consumer prices rose 0.35% over the previous month, which was above the 0.16% increase observed in June. The monthly increase reflected higher prices for food and non-alcoholic beverages as well as for clothes. As a result, annual headline inflation inched up from 2.6% in June to 2.7% in July, which marks the highest level in four months. Moreover, the annual result overshot market expectations that had inflation stable at 2.6% The core inflation index, which strips out energy and fresh food prices, was unchanged over the previous month, which was down from the 0.1% increase observed in June. Consequently, annual core inflation remained stable at June's 1.9%, thereby remaining well within the Central Bank's 0.5%-3.0% target range.
Author: Ricardo Aceves, Senior Economist