Thailand’s May Inflation Slows to 0.53% and Could Contract in June

Thailand’s headline inflation for May rose 0.53% on year, largely below forecasts for 1.70% by Reuters poll, according to the data released by the Commerce Ministry on Tuesday. The reading in May was lowest in 21 months due to falling energy and food prices and a high base in 2022. Headline inflation rose 2.67% in April.

Meanwhile, core inflation was up 1.55% YoY, but still below forecast for a 1.60% increase by Reuters poll. Core inflation rose 1.66% in April.

The Commerce Ministry noted that Thailand’s headline inflation could slow further and might contract in June.

This is the third month in a row that headline inflation has come within the target range of 1-3% by the Bank of Thailand.

The Commerce Ministry estimated average headline inflation to be between 1.7% and 2.7% for this year.