Thai March inflation beats forecast, nonetheless at 13-year excessive

BANGKOK: Thailand’s headline client worth index (CPI) jumped by a higher-than-expected 5.73% in March from a 12 months earlier, the quickest tempo in 13 years, pushed by stronger costs of products and vitality, the commerce ministry stated yesterday.

That in contrast with a forecast for an increase of 5.60% in a Reuters ballot and adopted February’s 5.28% improve, breaching the highest finish of the central financial institution’s goal vary of 1% to three% for a 3rd straight month.

The commerce ministry raised its forecast for headline inflation to 4% to five% this 12 months from a earlier estimate of 0.7% to 2.4%, official Ronnarong Phoolpipat advised a information convention. In 2008, inflation was 5.5%.

Authorities measures together with worth controls on important items, a cap on gas costs and subsidies would assist sluggish an increase in inflation, he stated.

“Policymakers seen that the present excessive inflation have to be intently monitored, however it’s not so worrying that additional measures can be wanted,” Phoolpipat stated.

The central financial institution final week raised its 2022 headline inflation outlook to 4.9% from a earlier forecast of 1.7%, noting supply-driven inflation ought to be non permanent.

In March, the core CPI index, which strips out unstable contemporary meals and vitality costs, was up 2% from a 12 months earlier, additionally beating a forecast for a 1.80% rise.

Within the January-March interval, headline inflation was 4.75%, with the core fee at 1.43%.

Experiences have said that Thailand’s economic system expanded 1.6% in 2021, as a powerful restoration in exports helped South-East Asia’s second-largest economic system.

The turnaround adopted a 6.2% contraction recorded in 2020 because of the Covid-19 pandemic. — Reuters


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