Thailand: Inflation remains stable in November
December 2, 2011
In November, consumer prices added 0.21% over the previous month, which was above the 0.19% increase recorded in October. The monthly rise reflected higher prices for food and beverages, particularly for fresh food, which were affected by the floods, albeit the impact was less severe than initially expected. That said, annual headline inflation remained steady in November at October's 4.2%, falling short of market expectations of a 4.4% increase. The core inflation index, which strips out more volatile categories such as raw food and energy, rose only 0.03% in November (October: +0.07% month-on-month), which saw annual core inflation unchanged at 2.9% for the fourth consecutive month. At the current level, core inflation remains only a notch below the ceiling of the Central Bank's 0.5%-3.0% target range. The Central Bank revised its inflation forecast for this year and now expects it to average 3.8%, slightly down from its previous 3.9% estimate. For 2012, the Bank expects inflation to average 3.5%, which is up from its previous 3.2% projection.
Author: Ricardo Aceves, Senior Economist