Economy 2 MIN READ

UPDATE 1-Thai March inflation beats forecast, still at 13-yr high

April 5, 2022By Reuters

March headline CPI +5.73% y/y vs +5.60% in Reuters poll

March core CPI +2.0% y/y vs +1.8% in poll

Ministry raises headline inflation forecast to 4%-5% this year

Higher inflation is not that worrying – official

Adds detail, outlook, official’s comment

By Kitiphong Thaichareon

Thailand’s headline consumer price index (CPI) jumped by a higher-than-expected 5.73% in March from a year earlier, the fastest pace in 13 years, driven by stronger prices of goods and energy, the commerce ministry said on Tuesday.

That compared with a forecast for a rise of 5.60% in a Reuters poll and followed February’s 5.28% increase, breaching the top end of the central bank’s target range of 1% to 3% for a third straight month.

The commerce ministry raised its forecast for headline inflation to 4% to 5% this year from a previous estimate of 0.7% to 2.4%, official Ronnarong Phoolpipat told a news conference. In 2008, inflation was 5.5%.

Government measures including price controls on essential goods, a cap on fuel prices and subsidies would help slow a rise in inflation, he said.

“Policymakers viewed that the current high inflation must be closely monitored, but it’s not so worrying that further measures would be needed,” Ronnarong said.

The central bank last week raised its 2022 headline inflation outlook to 4.9% from a previous forecast of 1.7%, noting supply-driven inflation should be temporary. nL3N2VW1BB

In March, the core CPI index, which strips out volatile fresh food and energy prices, was up 2.0% from a year earlier, also beating a forecast for a 1.80% rise.

In the January-March period, headline inflation was 4.75%, with the core rate at 1.43%.

(Reporting by Kitiphong Thaichareon
Writing by Orathai Sriring
Editing by Ed Davies and Kanupriya Kapoor)


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