BANGKOK: Thailand’s headline pumpiing outstripped forecasts to hit a near 14-year high in June, reinforcing expectations of a price hike as early as the following month, and with the commerce ministry warning price pressures will extend to the third quarter.
The subject consumer price index (CPI) rose seven. 66 per cent from the year ago, powered up by increased energy prices as well as affected by base effects, the ministry stated on Tuesday (Jul 5).
The particular figure beat a forecast 7. fifty per cent rise in the Reuters poll plus compared with May’s 7. 10 per cent increase.
The CPI in the current quarter can be expected to rise at a similar pace as the second quarter’s 6. 46 per cent, ministry official Ronnarong Phoolpipat told an information conference.
Consumer prices, however , need to fall sharply within the final quarter of the year due to last year’s high comparison figures, he stated.
While the pace of inflation has been difficult to predict due to various factors including a weak baht, the ministry has been maintaining its forecast for average heading inflation of four. 5 per cent this year. In 2008, inflation was 5. 5 per cent.
The central bank, nevertheless , expects headline inflation of 6. two per cent for this calendar year, above its focus on range of 1 percent to 3 percent.
The main bank is broadly expected to hike its policy rate from a record low associated with 0. 50 % at its next meeting on August 10 to contain rising inflation.
The core CPI index, which strips out energy and fresh food costs, rose 2 . fifty-one per cent from a year earlier, also beating a forecast 2 . 37 per cent rise, and compared with May’s 2 . 28 % increase.
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