According to the Commerce Ministry, Thailand’s headline Consumer Price Index (CPI) increased by 1.54% in May compared to the previous year, contrasting with a 0.19% annual rise in the preceding month.
The May inflation rate surpassed expectations, as it was projected to grow by 1.19% in a Reuters poll. This marks the first time since April 2023 that the headline inflation rate has returned to the central bank’s target range of 1% to 3%.
Excluding volatile food and energy prices, the core CPI rose by 0.39% year-on-year in May.
For the initial five months of 2024, the average headline CPI declined by 0.13% year-on-year, while the core rate increased by 0.42%.
The Commerce Ministry has maintained its headline inflation forecast for the year within the range of 0.0% to 1.0%, indicating that CPI may gradually increase in June.
In April, the Bank of Thailand (BoT) kept its key interest rate at 2.50%, which is a more than decade-high rate. The upcoming rate review is scheduled for June 12, with the majority of economists expecting no changes in policy.
