Thailand: Inflation quickens to 13-month high
January 3, 2013
In December, consumer prices rose 0.39% over the previous month, which contrasted both the 0.35% drop recorded in November and the 0.48% decline recorded in December 2011. The reading primarily reflected higher prices for food and non-alcoholic beverages, particularly for fresh food. As a result of the monthly jump, annual headline inflation climbed to 3.6% in December (November: 2.7% year-on-year), exceeding market expectations that had inflation rising to 3.2%.
The core inflation index, which excludes energy and fresh food prices, added 0.04% over the previous month, which was almost unchanged from the 0.05% rise recorded in November, driving annual core inflation to 1.8% in December (November: 1.9% yoy). At the current level, core inflation remains well within the Central Bank's 0.5%-3.0% target range.
Author: Ricardo Aceves, Senior Economist