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Thai May inflation accelerates to 16-month high

Bangkok Post
2018-06-05 15:40

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The annual headline inflation rate in May hit its highest level in 16 months and beat forecasts, driven by higher fuel prices, the Commerce Ministry said on Friday.

The headline consumer price index (CPI) rose 1.49% in May from a year earlier, after rising 1.07% in April.

A Reuters poll projected a rise of 0.8% in May. The index also within the Bank of Thailand's target range of 1% and 4% for the second straight month.

In the January-May period, the index rose 0.89% from a year earlier.

The core CPI, which excludes raw food and energy prices, increased 0.8% in May from a year earlier, higher than the poll's median of 0.7%.

In January-May, the index was up 0.66% from a year earlier.

The central bank has left its policy interest rate unchanged at 1.5%, near record lows, since April 2015. It will next review policy on June 20.

Most analysts expect no policy change throughout 2018, though some see increases in the second half of this year.
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