Thailand’s annual headline inflation was weaker than expected in July, helped by lower food and energy prices. The Ministry of Commerce said on Monday (7 Aug) that it projected smaller consumer price rises for the rest of the year.
The headline consumer price index (CPI) increased 0.38% in July from a year earlier, compared with a forecast rise of 0.64% in a Reuters poll, and against June’s 0.23% rise.
It was the third successive month that headline inflation was below the Bank of Thailand’s (BOT) target range of 1% to 3%.
Poonpong Naiyanapakorn, head of the ministry’s trade policy and strategy office, told a press conference that the headline CPI in August could rise slightly as some food prices pick up due to drought, while energy prices are likely to increase.
He added, however, that average headline inflation should remain low at 0.36% in the second half of 2023.
On Monday, Poonpong said the commerce ministry maintained its prediction of average annual headline inflation at 1% to 2%, which would be reviewed in September.
He further noted that a delay in the formation of a new government has yet to affect consumers’ purchasing power.
In July, the core CPI rose 0.86% from a year earlier, compared with a forecast for a 0.90% rise in the poll, and against June’s 1.32% increase.
Last week, the central bank raised its key interest rate for a seventh straight meeting to 2.25% as inflation risks lingered. It will next review monetary policy on September 27.
In the January-July period, the headline CPI rose 2.19% year-on-year, with the core CPI up 1.73%.
