Thailand Inflation Accelerates to 2.53% in August, Stays Within Target

Thailand’s consumer price index climbed 2.53% on a year-over-year basis in August, accelerating from 1.95% in July, based on Commerce Ministry data released today. That pickup, the first in four months, came in above the 2.43% median expectation from a Bloomberg economist survey.

At 2.53%, the figure stays inside the Bank of Thailand’s 1%-3% target band. The central bank left its policy rate at 1% for a third straight meeting in August.

On a month-over-month basis, prices advanced 0.56% in August, swinging from a 0.73% decline in July and surpassing the 0.51% median forecast. Underlying inflation accelerated to 1.44% from 1.34%.

Last week, Bank of Thailand Governor Vitai Ratanakorn said weak growth, not price pressures, poses Thailand’s main economic risk, and that monetary policy remains accommodative.

Nantapong Chiralerspong, director-general of the Commerce Ministry’s Trade Policy and Strategy Office, said inflation could continue to climb in September on higher oil, food, and transportation costs. The ministry projects full-year price gains to average between 1.5% and 2.5%, with the rate potentially reaching about 2.7% in the fourth quarter.

“Elevated oil prices amid Middle East tensions and an El Nino that is expected to intensify will be key drivers of inflation late this year,” Nantapong said.

This news article was produced with the support of artificial intelligence and underwent editorial review. For more information, please refer to our Terms and Conditions.