Thai March inflation misses central bank target for 11th month

THAILAND’S headline consumer price index dropped for the sixth straight month in March, the commerce ministry said, and was outside the central bank’s target range for the 11th straight month.

The headline consumer price index (CPI) in March fell 0.47 per cent from a year earlier, compared with a forecast drop of 0.4 per cent in a Reuters poll and outside the central bank’s target range of 1 to 3 per cent.

The drop was driven by food and energy prices due to government cost of living subsidies, Director of Trade Policy and Strategy Office, Poonpong Naiyanapakorn told a press conference.

However, global energy prices are likely to put upwards pressure on inflation next month.

“April (numbers) will still be negative, but much smaller,” he said, adding that inflation will turn positive to 0.5 to 0.6 per cent in the second and third quarters due to higher world oil prices and weak baht.

In March, core CPI, which excludes volatile food and energy prices, rose 0.37 per cent year on year, compared to a forecast increase of 0.4 per cent in the poll.

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The ministry tightened 2024 inflation forecast to 0 to 1 per cent from -0.3 per cent to +1.7 per cent seen previously. REUTERS