Thailand recorded annual headline inflation of 3.9% in October, with increases in oil, food and transport costs lifting the rate to its highest in almost four years. Figures published Friday by the Commerce Ministry showed an acceleration from September’s 2.82%, taking inflation above the central bank’s target.
The October result marked the first breach of the Bank of Thailand’s 1%-3% band in almost four years. It also surpassed forecasts in economist surveys of 3.24% in a Reuters poll.
The figures follow the central bank’s October decision to leave its policy rate at 1%. At that meeting, policymakers regarded the anticipated inflation increase as temporary and weighed price pressures against an uneven pace of economic expansion.
In its assessment of activity, the bank pointed to support from the worldwide technology and artificial-intelligence boom. However, it said the gains were confined to particular sectors, while the economy as a whole was still growing below its potential.
Energy costs were a major contributor to October’s price increase. The government linked more expensive fuel to instability in international energy markets arising from the Middle East conflict. Food and transport also contributed to the increase in the headline index, according to the ministry.
Excluding energy and fresh food, the annual increase in the core consumer-price index reached 1.58%. That compared with 1.5% in September.
The Commerce Ministry left its full-year inflation projection unchanged at 1.8%-2.2%, despite anticipating a further increase in the headline rate in November.
