Thailand's Inflation Update

BANGKOK (Reuters) – Thailand's annual headline inflation rate increased in October due to rising energy and food prices, according to the commerce ministry on Wednesday. However, it remained below the central bank's target range of 1% to 3%.

The headline consumer price index (CPI) rose 0.83% in October from a year earlier. This figure was below the forecast rise of 0.94% in a Reuters poll and followed September's annual increase of 0.61%. The core CPI, excluding volatile food and energy prices, increased 0.77% in October compared to a year earlier, aligning with a forecast rise of 0.79% in the poll. For the January-October period, the average annual headline inflation was 0.26%, with core inflation at 0.52%.

The commerce ministry maintained its full-year inflation forecast of 0.2% to 0.8%. Poonpong Naiyanapakorn, the director of the ministry's trade policy and strategy office, informed reporters that the 2024 figure would likely be under 0.5%. Inflation is anticipated to rise above 1% in November and December, with expectations of about 1.12% in the final quarter of 2024, stated Poonpong during a press conference.