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Thai Nov headline CPI rises 0.99% y-o-y, in line with forecasts

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The Bank of Thailand (BOT) forecast 2017 headline inflation of 0.6 per cent, below its 1-4 per cent target range. But it expects that to return to the band by mid-2018.

[BANGKOK] Thailand's annual consumer inflation rate increased in November, in line with forecasts, government data showed on Friday, but the pace was still below the central bank's target, giving it room to keep monetary policy loose.

The headline consumer price index rose 0.99 per cent in November from a year earlier, up from October's 0.83 per cent rise.

A Reuters poll projected an increase of 1 per cent in November.

The Bank of Thailand (BOT) forecast 2017 headline inflation of 0.6 per cent, below its 1-4 per cent target range. But it expects that to return to the band by mid-2018.

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On Nov 8, the BOT left its policy interest rate unchanged at 1.50 per cent, a near record low. The rate has been at that level since April 2015.

It next reviews the monetary policy on Dec 20. Most economists expect no change well into 2018.

The core CPI index, which excludes raw food and energy prices, rose 0.61 per cent in November year-on-year, roughly in line with the poll's median forecast of 0.63 per cent increase.

In the January-November period of 2017, annual headline CPI rose 0.66 per cent and the core index increased 0.55 per cent.

The commerce ministry predicts headline inflation of 0.7 per cent for this year and a range of 0.6-1.6 per cent for next year.

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

REUTERS

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