According to data that was released by the government on Wednesday, consumer inflation in Thailand reached its lowest level in 15 months in March, helped in part by decreasing prices for both food and energy.
According to the Ministry of Commerce, the Consumer Price Index (CPI) of the country, which is a crucial predictor of inflation, fell for three consecutive months in March to 2.83 percent year on year, down from a 3.79-percent increase in the previous month.
The headline inflation rate in Thailand has, for the first time in the past 15 months, dropped to a level that is within the target range of one percent to three percent that was set by the Bank of Thailand.
The core Consumer Price Index, which strips out the effects of changes in the cost of raw materials and energy, showed a year-over-year gain of 1.75 percent, which is lower than the increase of 1.93 percent recorded one month earlier.
According to Wichanun Niwatjinda, deputy director-general of the ministry’s Trade Policy and Strategy Office, the ministry anticipates that headline inflation will decrease even further in the second quarter of 2023 due to lower oil prices, a contraction in exports, government supportive measures, policy rate hikes, and a high comparative base from the previous year.
At a news conference, Wichanun stated that rising demand as a result of the economic recovery, extended holidays, and activities associated to general elections will affect the cost of products and services. It is recommended that these potential price changes be properly monitored.
According to him, the prognosis for annual headline inflation has been revised downward by the ministry to a range of 1.7 percent to 2.7 percent for this year, down from an earlier projection of 2 percent to 3 percent.
