Thai November headline inflation misses forecast, below central bank target
Published Wed, Dec 4, 2024 · 01:11 PM
THAILAND’S headline consumer price index (CPI) rose 0.95 per cent in November from a year earlier, driven by higher food and energy prices, after the previous month’s annual increase of 0.83 per cent, the commerce ministry said on Wednesday.
The figure compared with a forecast rise of 1.1 per cent in a Reuters poll, and was below the central bank’s target range of 1 per cent to 3 per cent.
The core CPI was up 0.80 per cent in November from a year earlier, slightly above a forecast increase of 0.77 per cent.
In the January-November period, average annual headline inflation was 0.32 per cent, with core inflation at 0.55 per cent.
Headline inflation could be at 1.2 per cent to 1.3 per cent in December, and coming at 0.4 per cent to 0.5 per cent for the full year, Poonpong Naiyanapakorn, director of the ministry’s trade policy and strategy office, told a press conference.
The ministry projected headline inflation at between 0.3 per cent to 1.3 per cent in 2025, helped by expected stronger economic growth and government stimulus measures.
On Tuesday, Finance Minister Pichai Chunhavajira said he wanted a further rate cut to support the economy as inflation was low.
Bank of Thailand Governor Sethaput Suthiwartnarueput said on Tuesday a mix of policies was needed to manage the economy as interest rates alone cannot address everything, however.
In October, the central bank’s monetary policy committee unexpectedly cut the key interest rate by a quarter point to 2.25 per cent but said it was not the start of an easing cycle.
The next policy review is on Dec 18. REUTERS
