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Thai June consumer prices fall for sixth straight month

[BANGKOK] Thailand's annual consumer prices dropped for a sixth straight month in June, mainly due to lower energy prices, giving the central bank room to keep interest rates low or cut them to support the stumbling economy.

The index, published by the Commerce Ministry, declined 1.07 per cent in June from a year earlier, in line with a Reuters poll forecast for a 1.0 per cent drop.

The ministry said on Wednesday there was no deflation yet and it expected positive headline CPI in the last quarter of this year.

The core inflation rate, which strips out food and energy prices, rose 0.94 per cent in June, the same as in May.

The central bank left its benchmark interest rate unchanged at 1.50 per cent in June after two surprise cuts in a row. It next reviews policy on Aug 5.

REUTERS