Thailand: Inflation holds steady in November
December 2, 2010
In November consumer prices jumped 0.28% over the previous month, which contrasted the unchanged figure observed in October. The monthly price spike reflected higher prices for food and beverages, as well as for energy. Annual inflation remained unchanged over October at 2.8%, undershooting market expectations for inflation to inch up to 2.9%. At the current level, inflation remains within the Central Bank's target range of 0.5% - 3.0%, which is based on quarterly average core inflation (the current quarterly average is 1.1%). The core inflation index, which strips out more volatile categories such as fresh food and energy prices, remained unchanged over the previous month (October: +0.10 mom), keeping annual core inflation stable at October's 1.1%. The Central Bank expects headline inflation to remain between 2.8% and 3.8% this year. For 2011, the Bank expects inflation to average between 3.0% and 5.0%.
Author: Ricardo Aceves, Senior Economist