August consumer price index up 0.32% y-o-y

A vendor sells vegetables at a fresh market in Nonthaburi on Aug 28. (Photo by Nittaya Nattayai)

Thai annual headline consumer prices rose for a second straight month in August, government data showed on Friday, but the inflation rate was still low, giving the central bank ample room to keep monetary policy loose to support the economy.

Headline consumer prices increased 0.32% in August from a year earlier, after a 0.17% rise in July. A Reuters poll projected a rise of 0.38% in August.

The Bank of Thailand (BOT) has forecast 2017 headline inflation of 0.8%, below its 1-4 % target range.

The BOT has left its policy interest rate at 1.50% since April 2015. It next reviews policy on Sept 27, and most analysts expect no change this year.

The core CPI index, which excludes raw food and energy prices, rose 0.46% in August from a year earlier, roughly in line with the poll’s median expectation of a 0.50% increase.

In the January-August period, headline CPI rose 0.56% from a year earlier and the core index increased 0.54%.

Inflation in Thailand has also been contained by state price controls, subsidies and soft domestic demand. 

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