BANGKOK (Reuters) – Thailand’s headline inflation dropped to its lowest in 16 months in April thanks to lower energy and food prices and a high base in 2022, the commerce ministry said on Wednesday.
The headline consumer price index (CPI) rose 2.67% in April from a year earlier, close to a rise of 2.70% forecast in a Reuters poll, and against March’s 2.83% increase.
The core CPI index in April was up 1.66% from a year ago, the slowest in 15 months, and below a forecast increase of 1.70%.
It was the second month in a row that headline inflation came in within the central bank’s target range of 1% to 3%. The commerce ministry on Wednesday said headline inflation should fall sharply in May due to a high base in 2022 and lower fuel prices.
“Inflation could be less than 2% in May as last year’s base was very high… the figure might be the lowest in 20 months,” commerce ministry official Poonpong Naiyanapakorn told a press conference.
Ministry official Wichanun Niwatjinda said headline inflation was expected at less than 3% in the April-June quarter and that spending ahead of Thailand’s May 14 election had been discounted.
The commerce ministry maintained its forecast for average headline inflation at between 1.7% and 2.7% for the year, which was cut last month from 2% to 3%.
In January to April, headline inflation was 3.58%, with the core rate at 2.09%, the ministry said.
In March, the Bank of Thailand (BOT) raised its policy interest rate by a quarter point to 1.75%, and said its tightening would continue since inflation risks persisted.
It will next review policy on May 31, when economists expect a further hike.
(Reporting by Orathai Sriring, Satawasin Staporncharnchai and Kitiphong Thaichareon; Editing by Martin Petty, Kanupriya Kapoor)
