Thailand’s Headline Inflation Falls for First Time in Two Years

Thailand’s annual headline inflation for October declined for the first time in more than two years amid falling energy and goods prices due to support measures from the government.

According to the data released by the commerce ministry on Monday, Thailand’s headline consumer price index (CPI) fell 0.31% in October from last year, marking the first drop since August 2021. Reuters poll expected a 0.0% growth, while the year-on-year growth in the previous month showed a 0.3% rise.

The reading in October marked its sixth consecutive monthly headline inflation data that was below the Bank of Thailand’s target range of 1-3%.

Thailand’s headline inflation recorded 1.60% YoY increase in the January-October period.

Meanwhile, core CPI was up 0.66% YoY, compared to a forecast of 0.59% rise from Reuters poll and 0.63% increase in September.

Thailand’s key policy rate is now standing at 2.50% after a quarter point increase in September.