Thai inflation returns to target range for first time in 7 months By Reuters

BANGKOK (Reuters) – Thailand’s inflation rate returned to the target range for the first time since May last year, boosted by higher energy and food prices, the commerce ministry said on Monday.

Thailand’s headline consumer price index rose 1.23% in December from a year earlier, within the central bank’s range of 1% to 3%, after a 0.95% annual increase the previous month.

The figure compares with a 1.47 percent rise forecast in a Reuters poll.

Core CPI increased by 0.79% in December compared to the previous year, which was expected to be 0.81%.

Average annual headline inflation in 2024 was 0.40% and core inflation was 0.56%.

Core inflation is expected to be around 1.25% in January and above 1% in the first quarter of this year, Poonpong Naiyanapakorn, director of the ministry’s trade policy and strategy office, told a news conference.

The ministry maintained its headline inflation forecast for 2025 at between 0.3 and 1.3 percent, fueled by expected stronger economic growth and government stimulus measures.

Last month, Finance Minister Pichai Chunhawajira said the Bank of Thailand should bring inflation to the midpoint of the target range and should ensure the baht’s competitiveness.

On December 18, the central bank left its key interest rate unchanged at 2.25%, following a surprise cut at the previous review in October.

It forecast 1.1% inflation in 2025. The next rate review will be on February 26.