Inflation unexpectedly up in June but at slower pace

People visited the 27th Saha Group Fair, which took place at Bitec Bang Na between June 29 and July 2, 2023. This year’s event offered a wide selection of affordable food and consumer products from various brands. (Photo: Somchai Poomlard)

Thailand's headline consumer price index (CPI) increased 0.23% in June from a year earlier, slowing from a 0.53% year-on-year rise in the previous month, the Commerce Ministry said on Wednesday.

Headline inflation was the lowest in 22 months, due to lower food and energy prices and a high base last year. It is expected to rise slightly in the third quarter, the ministry said.

The figure compared with a forecast fall of 0.1% for June in a Reuters poll. The core CPI was up 1.32% year-on-year in June.

It was the second straight month that the main CPI dropped below the Bank of Thailand's (BoT) target range of 1% to 3%.

In the January-June period, annual headline inflation was 2.49% and the core rate at 1.87%, the ministry said, with headline inflation for 2023 seen at 1% to 2%.

In May, the central bank raised its policy interest rate by a quarter point to 2%. It will next review policy on Aug. 2, when some economists expect no rate change while others see a further hike.

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