Thai July headline consumer prices up 0.17% y-o-y, less than forecast

[BANGKOK] Thai annual headline consumer prices, which slipped the two previous months, rose slightly in July, government data showed on Tuesday, which still leaves the central bank plenty of room to keep interest rates near record lows.

Headline consumer prices rose 0.17 per cent in July from a year earlier, after a 0.05 per cent dip in June. A Reuters poll projected a rise of 0.21 per cent in July.

The Bank of Thailand has forecast headline inflation this year of 0.8 per cent, below its one to 4 per cent target range. It expects inflation to return to the target band by early next year.

The BOT has left its policy interest rate at 1.50 per cent since April 2015. It next reviews policy on Aug 16, and most analysts expect no change throughout 2017.

The core CPI index, which excludes raw food and energy prices, rose 0.48 per cent in July from a year earlier, slightly above the poll's median of a 0.44 per cent rise.

In the January-July period, headline CPI rose 0.60 per cent year-on-year, with the core index up 0.55 per cent.

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

REUTERS