Thailand: Inflation rises in September
October 2, 2012
In September, consumer prices added 0.34% over the previous month, which came in below the 0.40% increase recorded in August, but contrasted the 0.33% drop recorded in the same month last year. The print reflected how higher prices for food and non-alcoholic prices offset lower prices for transport. As a result, annual headline inflation climbed to 3.4% in September from 2.7% in August. The core inflation index, which excludes energy and fresh food prices, rose 0.23% over the previous month, which was above the 0.17% increase observed in August. As a result, annual core inflation rose to 1.9% in September (August: 1.8% year-on-year). At the current level, core inflation remains well within the Central Bank's 0.5%-3.0% target range. Annual average inflation continues its downward trajectory, inching down from 3.3% in August to 3.2% in September, its lowest level since April 2011. The Bank of Thailand projects inflation to average 2.9% this year and 3.4% in 2013.
Author: Ricardo Aceves, Senior Economist