Thailand: Inflation inches up in October
November 4, 2013
In October, consumer prices rose 0.17% over the previous month, which was virtually unchanged over the 0.16% increase recorded in September. According to the Ministry of Commerce, October's reading came on the back of increasing prices for housing and furnishing as well as for non-food and beverages.
Annual headline inflation inched up from 1.4% in September to 1.5% in October, which was slightly above the 1.4% increase the markets had forecast.
The core inflation index, which excludes energy and fresh food prices, remained at September's 0.1%. In addition, annual core inflation inched up from 0.6% in September to 0.7% in October and thus core inflation remains within the Central Bank's 0.5%-3.0% target range.
The Bank of Thailand projects inflation to average 2.3% in 2013 and 2.6% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 2.8% in 2013, which is down 0.1 percentage points from last month's Consensus. For 2014, panelists see average inflation at 3.1%, which is also down 0.1 percentage points from last month's projection.
Author: Dirina Mançellari, Senior Economist