Thailand: Inflation remains steady in May
June 1, 2012
In May, consumer prices added 0.39% over the previous month, which followed a 0.42% increase in April. The monthly rise was the result of higher prices for food and non-alcoholic beverages. Meanwhile, annual headline inflation remained stable at April's 2.5%, which marks the lowest level since November 2009. The core inflation index, which does not include more volatile categories such as fresh food and fuel, rose 0.29% over the previous month, up from the 0.10% increase observed in April. Annual core inflation inched down from 2.1% in April to 2.0% in May, thereby remaining well below the upper limit of the Central Bank's 0.5%-3.0% target range. Annual average inflation fell to 3.6% in May from 3.8% in April. The Bank of Thailand expects inflation to average 3.5% both this year and next.
Author: Ricardo Aceves, Senior Economist