Thailand’s Headline Inflation Reaches 13-Month High in May
Thailand’s headline inflation experienced a surge in May, reaching its highest rate in 13 months. The increase was attributed to the rise in energy prices and higher prices of agricultural products due to the scorching weather conditions, as per official data reported by Xinhua.
The consumer price index (CPI) saw a significant jump of 1.54 per cent compared to the previous year, marking an acceleration from the 0.19 per cent increase in April. This data was released by Thailand’s Ministry of Commerce.
May’s inflation figures brought it back within the target range of one to three per cent set by the Bank of Thailand for the first time since April 2023. The core CPI, which excludes raw food and energy prices, also saw an increase of 0.39 per cent year on year in May, slightly higher than the previous month.
Director General of the ministry’s Trade Policy and Strategy Office, Poonpong Naiyanapakorn, highlighted that the headline CPI had declined by 0.13 per cent for the first five months of 2024 compared to the same period last year.
Looking ahead, it is anticipated that headline inflation will rise at a slower pace in June. This projection is based on the government’s initiatives to lower electricity prices and the expected decrease in agricultural product prices with the onset of the rainy season, as mentioned by Poonpong during a recent news conference.
With these developments in mind, the economic landscape in Thailand continues to be closely monitored to assess the impact of inflation on various sectors and the overall market stability.