Thailand’s April headline inflation lowest in 16 months, to drop additional


BANGKOK (Reuters) – Thailand’s headline inflation dropped to its lowest in 16 months in April because of decrease vitality and meals costs and a excessive base in 2022, the commerce ministry stated on Wednesday.

The headline client value index (CPI) rose 2.67% in April from a 12 months earlier, near an increase of two.70% forecast in a Reuters ballot, and towards March’s 2.83% enhance.

The core CPI index in April was up 1.66% from a 12 months in the past, the slowest in 15 months, and under a forecast enhance of 1.70%.

It was the second month in a row that headline inflation got here in throughout the central financial institution’s goal vary of 1% to three%. The commerce ministry on Wednesday stated headline inflation ought to fall sharply in Could attributable to a excessive base in 2022 and decrease gasoline costs.

“Inflation could possibly be lower than 2% in Could as final 12 months’s base was very excessive… the determine may be the bottom in 20 months,” commerce ministry official Poonpong Naiyanapakorn instructed a press convention.

Ministry official Wichanun Niwatjinda stated headline inflation was anticipated at lower than 3% within the April-June quarter and that spending forward of Thailand’s Could 14 election had been discounted.

The commerce ministry maintained its forecast for common headline inflation at between 1.7% and a pair of.7% for the 12 months, which was minimize final month from 2% to three%.

In January to April, headline inflation was 3.58%, with the core fee at 2.09%, the ministry stated.

In March, the Financial institution of Thailand (BOT) raised its coverage rate of interest by 1 / 4 level to 1.75%, and stated its tightening would proceed since inflation dangers endured.

It would subsequent evaluation coverage on Could 31, when economists anticipate an extra hike.

(Reporting by Orathai Sriring, Satawasin Staporncharnchai and Kitiphong Thaichareon; Modifying by Martin Petty, Kanupriya Kapoor)