Inflation at 12-month low
Inflation as measured by the consumer price index hit a 12-month low in October on the back of declining food and energy prices, which eased for a fifth consecutive month.
The Commerce Ministry yesterday reported headline inflation, based on 450 items, dropped to a 12-month low of 1.48% year-on-year.
In September, the rate had fallen to 1.75% after readings of 2.09% in August, 2.16% in July and 2.35% in June.
Core inflation, which excludes volatile food and energy prices, eased to 1.67% last month from 1.73% in September.
For the first 10 months, annual inflation registered 2.08% and core inflation 1.57%.
The latest core inflation figures remain within the Bank of Thailand’s target range of 0.5% to 3%.
“Domestic energy prices, which fell in line with lower global prices, together with efficient measures to contain the cost of living contributed to the falling index,” said Commerce Ministry adviser Ampawon Pichalai.
She said the private sector’s cooperation with the National Council for Peace and Order’s request to maintain product prices to ease the cost of living had also held down consumer prices in recent months.
However, the price of pork, eggs and vegetables fell due to massive supply resulting from the cool weather and rainy season.
“Despite inflation easing for a fifth consecutive month, we remain confident this will not end in a condition of deflation,” Ms Ampawon said.
Overall domestic food prices remained on the increase last month, up by 3.25% year-on-year. Rises were recorded in every part of the country.
The Commerce Ministry forecasts inflation will stay at 2.1% in the fourth quarter, with the rate for the second half at 2.05%, which is in line with yesterday’s rosy outlook from Deputy Prime Minister MR Pridiyathorn Devakula.