Thailand annual headline inflation rate escalates swiftly to 0.9%

Reuter’s poll on Friday revealed Thailand’s swift escalation of its annual headline inflation rate for the month of December. However, the rate is still below the central bank’s target for the seventh consecutive month.

The headline consumer price index (CPI) is predict5ed to go up by 0.9% in December from the previous year after a 0.21% increase in November, as shown by the median forecast of nine economists.

The Bank of Thailand (BOT) forecast headline inflation of around 0.7% for 2019, and 0.8% for 2020.

These figures, however, will remain below the central bank’s official target range of inflation from 1%-4% for this year and 1%-3% for next year. The target is reviewed annually.

The core inflation rate, which excludes energy and fresh food price rates, was at o.5% in December and 0.47% in November.

The Bank of Thailand held its interest rate at 1.25% after a couple of rate cuts earlier in 2019 to beef up economic growth.