Thai Inflation in July Slower Than Expected

[snoop1130]

 

BANGKOK (NNT) - Thailand’s annual headline inflation was weaker than expected in July, helped by lower food and energy prices. The Ministry of Commerce said on Monday (7 Aug) that it projected smaller consumer price rises for the rest of the year.

 

The headline consumer price index (CPI) increased 0.38% in July from a year earlier, compared with a forecast rise of 0.64% in a Reuters poll, and against June’s 0.23% rise.

 

It was the third successive month that headline inflation was below the Bank of Thailand’s (BOT) target range of 1% to 3%.

Poonpong Naiyanapakorn, head of the ministry’s trade policy and strategy office, told a press conference that the headline CPI in August could rise slightly as some food prices pick up due to drought, while energy prices are likely to increase.

 

He added, however, that average headline inflation should remain low at 0.36% in the second half of 2023.

 

On Monday, Poonpong said the commerce ministry maintained its prediction of average annual headline inflation at 1% to 2%, which would be reviewed in September.

 

He further noted that a delay in the formation of a new government has yet to affect consumers’ purchasing power.

 

In July, the core CPI rose 0.86% from a year earlier, compared with a forecast for a 0.90% rise in the poll, and against June’s 1.32% increase.

 

Last week, the central bank raised its key interest rate for a seventh straight meeting to 2.25% as inflation risks lingered. It will next review monetary policy on September 27.

 

In the January-July period, the headline CPI rose 2.19% year-on-year, with the core CPI up 1.73%.

 

By Paul Rujopakarn

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG230808132402794

 

-- © Copyright NNT 2023-08-08

 

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[Karma80]

With the economic recovery post pandemic swinging wildly in the wind in most countries, I think anyone could be grateful for that news. Down to prudent financial leadership, perhaps not, but welcome anyway.

[ThailandRyan]

Lower food prices? Not seeing it. Average bill for us is now almost 30% higher than 2 years ago.  Power bills are up as well as fuel.  Someone's telling porkies.

[hotchilli]

12 hours ago, snoop1130 said:

Thailand’s annual headline inflation was weaker than expected in July, helped by lower food and energy prices.

I still see food prices rising.. no cuts yet in my shopping budget?

[Cake Monster]

17 hours ago, ThailandRyan said:

Lower food prices? Not seeing it. Average bill for us is now almost 30% higher than 2 years ago.  Power bills are up as well as fuel.  Someone's telling porkies.

Certainly Food inflation is still on the up at pace.

Eggs have again increased in price

Veggies in the Markets are all up in price also

Meat seems to be stabilizing though

With India stopping Rice Exports, it will not be long before a large rise will be seen in this staple

 

[jacko45k]

On 8/9/2023 at 12:30 PM, Cake Monster said:

With India stopping Rice Exports, it will not be long before a large rise will be seen in this staple

Considering the amount Thailand exports (7.6 billion tonnes last year) I would hope the impact on Thai prices to be minimal. 

 

[billd766]

On 8/8/2023 at 6:51 PM, ThailandRyan said:

Lower food prices? Not seeing it. Average bill for us is now almost 30% higher than 2 years ago.  Power bills are up as well as fuel.  Someone's telling porkies.

I might have believed that if it was his wife who said that.

 

My wife has a different story as she is the one that does the shopping, and she needs more money to pay the weekly food bills.

[rickudon]

I wonder what are the items used to compute the CPI. Yes, prices haven't risen a lot, but quite a few packaged items are suffering shrinkflation. One item i buy regularly has shrunk to 85 grams from 100 grams - to me that is 15% inflation!