Thailand: Inflation Rate
Inflation in Thailand dropped below the target range of 1.0%-4.0% in October 2019, when it fell to 0.11% y/y, the lowest level year. The headline inflation deceleration came as a result of lower prices in the energy, housing, and transport & communication sectors. During the first then months of 2019, the headline inflation averaged 0.74%, largely decreasing from 1.15% y/y during the same period in 2018.
The Bank of Thailand’s Monetary Policy Committee (MPC) cut the policy rate from 1.75% to 1.50% at its meeting on August 7th, 2019. The decision was determined by stagnant economic growth, increasing global trade tensions, as well as extremely low inflation environment. The loosening policy stance is expected to support economic growth and push headline inflation up towards the target range. The Bank of Thailand expects that inflation will remain close to the lower bound or within its target.
Detailed data and analysis on Thailand’s economy can be found in the CEIC Thailand Economy in a Snapshot - Q3 2019.