Thai headline inflation at 22-month low, but central bank may hike rate further

BANGKOK : Thailand’s annual headline inflation unexpectedly rose in June but at its slowest pace in 22 months, and the commerce ministry on Wednesday lowered its forecast for consumer price rises for the whole year.

The headline consumer price index (CPI) increased 0.23 per cent in June from a year earlier, compared with a forecast fall of 0.1 per cent in a Reuters poll, and against May’s 0.53 per cent year-on-year rise.

The slower headline pace was due to lower food and energy prices and a high base last year, which should continue to help hold down consumer prices, the ministry said.

It was the second straight month that headline CPI dropped below the central bank’s target range of 1 per cent to 3 per cent.

Despite falling inflation, Thailand’s central bank is expected to raise rates further at its next meeting on Aug 2, as the economy continues to recover, said Payong…