Early voting - battleground states

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The Bank of Thailand (BoT) is aiming to keep inflation between 1% and 3% to stimulate economic growth. Deputy Governor Piti Disyatat stated at the Monetary Policy Forum that the bank expects headline inflation to reach 1.2% by 2025. This is higher than the 0.5% forecast for 2024, but still within the desired range.

 

The bank also expects core inflation, which excludes volatile items like fresh food and energy, to rise to 0.9% by 2025. Finance Minister Pichai Chunhavajira supports the goal, suggesting that a 2% inflation rate could boost the economy.

 

This year, Thailand has experienced low inflation, with a 0.2% increase from last year over the first nine months and core inflation at an average of 0.48%, according to Pichai.

 

The target is part of a broader plan to achieve economic growth of 2.8% to 3%. Structural reforms are also being discussed to potentially increase growth further.

 

Piti noted that inflation in Thailand is influenced by both local and global factors, with a significant impact from energy and fresh food, which account for 90% of domestic demand-side inflation. Global competition and government initiatives like the Oil Fuel Fund help manage inflation.

 

No signs of deflation are apparent, and the economy is expected to grow by 2.7% in 2024, increasing to 2.9% in 2025. Growth is supported by a strong tourism sector, with 36 million foreign visitors expected this year, rising to 39.5 million by 2025. Tourist income is projected to reach 1.4 trillion baht this year and 1.6 trillion next year.

 

Despite these positive signs, challenges remain, including US-China trade tensions and geopolitical issues in regions like the Middle East. The approaching US presidential election adds further uncertainty. However, Thailand's central bank is focused on maintaining steady inflation to support economic health and growth.

 

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-- 2024-10-31