Thailand aiming to keep inflation under 5% this year, PM says

THAILAND will try to keep inflation below 5 per cent this year, its prime minister said on Monday (May 23), amid surging fuel prices and a fragile economic recovery.

The inflation rate in Thailand was still among the lowest in the world and the government would manage the price of goods as much as possible, Prayuth Chan-ocha told a news conference.

"Many people are worried about inflation. The government is also worried and has already helped with this," he said.

Consumer prices rose 4.65 per cent in April from a year earlier, down from a 5.73 per cent jump the previous month, the fastest pace in 13 years. government measures including price controls, tax cuts, and subsidies have helped slow the rise.

Despite headline inflation breaching the central bank's target range of 1-3 per cent, it is not expected to raise interest rates soon due to the slow recovery. The central bank chief recently said the bank would ensure the recovery continues.

Last week, the state planning agency cut its 2022 economic growth outlook to 2.5 per cent to 3.5 per cent from 3.5 per cent to 4.5 per cent due to global uncertainty and inflation.

Last year's growth of 1.5 per cent was among the slowest rate in the region. REUTERS