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Pandemic, e-commerce to influence headline inflation
Though domestic headline inflation is expected to return to the target band in mid-2021, upcoming inflation dynamics will be marred by changes in the global economic system from the pandemic and e-commerce business, says the Bank of Thailand.
The central bank’s Monetary Policy Committee (MPC) assesses headline inflation will gradually reach the target band of 1-3% by the middle of this year, supported by fiscal and monetary stimulus, a recovery in consumer purchasing power and higher fresh food and energy prices, said central bank governor Sethaput Suthiwartnarueput in an open letter to the finance minister.
The MPC and Finance Minister Arkhom Termpittayapaisith agreed on Dec 22 to maintain the headline inflation target at 1-3% for this year, and as the medium-term monetary policy target.
But structural economic changes stemming from the pandemic, trade conflicts…
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