Thai June headline consumer prices dip for 2nd month

[BANGKOK] Thailand's annual headline consumer prices fell for a second straight month in June, mainly due to lower food prices, government data showed on Monday, ensuring the central bank has ample room to hold rates steady this week to aid economic recovery.

Headline consumer prices dropped 0.05 per cent in June from a year earlier, after a 0.04 per cent dip in May. A Reuters poll projected a fall of 0.10 per cent in June.

The central bank targets headline inflation of one to 4 per cent. It previously said headline CPI might fall below the target band in some periods due to supply-side factors before going higher in the second half of this year.

The core CPI index, which excludes raw food and energy prices, rose 0.45 per cent in June from a year earlier, in line with the poll. In May, it rose 0.46 per cent from a year earlier.

In the first six months of 2017, headline CPI rose 0.67 per cent from a year earlier while the core index rose 0.56 per cent.

Inflation in Thailand has also been contained by state price controls, subsidies and soft domestic demand.

The central bank is expected to leave its benchmark interest rate unchanged again at 1.50 per cent, where it has been since April 2015, at its meeting on Wednesday.

REUTERS