Thailand's inflation growth slowed in May and came in below market expectations, mainly due to declines in oil, vegetable, and meat prices.
According to reports, the Thai Ministry of Commerce announced on Friday that the Consumer Price Index (CPI) rose 2.79% year-on-year in May, lower than the market forecast of 3.10% and also lower than April's 2.89%.
At a press conference, Nantapong stated that the inflation rate in June is expected to be close to 3%, but there will be no significant upward pressure in the coming months, as international oil prices have not risen as previously expected.
He said that the government’s consumption subsidy program has helped boost economic activity and market confidence, while not causing significant pressure on inflation.
Data shows that the core inflation rate—excluding volatile energy and food prices—rose 0.92% year-on-year in May.
In addition, the Ministry of Commerce maintained its full-year inflation forecast at between 1.5% and 2.5%, within the Bank of Thailand's target range of 1% to 3%.
The Bank of Thailand's governor expects the inflation rate to be around 3% this year and to fall to 1.4% next year, and hinted the current interest rate level will remain unchanged in the short term.
The next interest rate meeting is scheduled for June 24.
At a press conference, Nantapong stated that the inflation rate in June is expected to be close to 3%, but there will be no significant upward pressure in the coming months, as international oil prices have not risen as previously expected.
He said that the government’s consumption subsidy program has helped boost economic activity and market confidence, while not causing significant pressure on inflation.
Data shows that the core inflation rate—excluding volatile energy and food prices—rose 0.92% year-on-year in May.
In addition, the Ministry of Commerce maintained its full-year inflation forecast at between 1.5% and 2.5%, within the Bank of Thailand's target range of 1% to 3%.
The Bank of Thailand's governor expects the inflation rate to be around 3% this year and to fall to 1.4% next year, and hinted the current interest rate level will remain unchanged in the short term.
The next interest rate meeting is scheduled for June 24.