Thai May headline CPI accelerates to 1.49%, beats forecast

[BANGKOK] Thailand's annual headline inflation rate in May hit its highest level in 16 months and beat forecasts, driven by higher fuel prices, the commerce ministry said on Friday.

The headline consumer price index (CPI) rose 1.49 per cent in May from a year earlier, after rising 1.07 per cent in April.

A Reuters poll projected a rise of 0.8 per cent in May.

The index also within the Bank of Thailand's target range of 1-4 per cent for the second straight month.

In the January-May period, the index rose 0.89 per cent from a year earlier.

The core CPI, which excludes raw food and energy prices, increased 0.80 per cent in May from a year earlier, higher than the poll's median of 0.7 percent. In January-May, the index was up 0.66 per cent from a year earlier.

The BOT has left its policy interest rate unchanged at 1.50 per cent, near record lows, since April 2015.

It will next review policy on June 20. Most analysts expect no policy change throughout 2018, though some see increases in the second half of this year.

AFP