Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Bangkok Post
Bangkok Post
Business

Headline inflation meets forecast in August, may have peaked

A woman walks past stacks of instant noodles at the Good Noodle store selling a wide variety of instant noodles from across Asia, in Bangkok on Aug 25, 2022. (AFP file photo)

Thailand's headline inflation rate in August rose slightly from the previous month to a 14-year high, in line with the forecast and reinforcing expectations of a further interest rate hike later this month.

The headline consumer price index (CPI) rose 7.86% in August from a year earlier, driven by energy prices and last year's low base, Commerce Ministry data showed on Monday. That compared with a forecast rise of 7.85% in a Reuters poll.

The pace, the fastest since July 2008, picked up from July's 7.61% rise and was far above the central bank's target range of 1% to 3%. Economists expect a further interest rate hike at the central bank's next meeting on Sept. 28.

The inflation rate, however, may have peaked in August, ministry official Ronnarong Phoolpipat told a news conference.

"Inflation stayed at 7% levels for three months in a row, suggesting it has peaked and will come down if the price situation continues like this," he said.

The ministry sees inflation at around 5% in the fourth quarter and a range of 5.5% to 6.5% in the whole of 2022, Mr Ronnarong said.

Government support measures, including an energy subsidy, and some price management have helped slow the rise of inflation, he said.

In August, the core CPI index, which strips out energy and fresh food prices, rose 3.15% from a year earlier, lower than a forecast 3.20% rise, but faster than July's 2.99%.

In the January-August period, headline inflation was 6.14% and the core rate was 2.16%. 

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.