Thai headline inflation slows in August, well below central bank target
THAILAND’S annual headline inflation slowed in August as food prices rose and energy prices fell, the commerce ministry said on Thursday (Sep 5), and kept below the central bank’s target range of 1 to 3 per cent.
The headline consumer price index (CPI) rose 0.35 per cent in August from a year earlier, after July’s annual increase of 0.83 per cent, to come in just under a forecast rise of 0.4 per cent in a Reuters poll.
Inflation should pick up in September, driven by rising diesel prices and floods, Poonpong Naiyanapakorn, director of the trade policy and strategy office, told a news conference.
“The flooding has pushed up the price of fresh vegetables and fresh fruits as some agricultural areas have been damaged,” he said, but saw only a short-term impact.
Inflation is expected to stand around 1.5 per cent in the fourth quarter of 2024, returning to within the target range, he added.
In the period from January to August, average annual headline inflation was 0.15 per cent, and the commerce ministry has retained its forecast for the full year of between zero and 1 per cent.
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The Bank of Thailand has kept its benchmark interest rate steady at a decade high of 2.5 per cent, despite government calls to cut borrowing costs to spur economic growth.
The central bank, which will next review policy on Oct 16, has said it is ready to adjust policy if needed.
Thailand’s finance minister and central bank chief will meet this month to discuss an inflation target for 2025, with the government seeking a new goal as it eyes an interest rate cut.
The core CPI, which excludes volatile food and energy prices, increased 0.62 per cent in August from a year earlier, just above the poll forecast for a rise of 0.55 per cent. The average annual core inflation was 0.44 per cent in the January-to-August period. REUTERS
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