Thailand: Inflation returns in September
Consumer prices increased 1.59% in September over the previous month, swinging from August’s 0.18% fall. September’s result was the highest reading since May 2008. The reading was primarily driven by rising prices for food and non-alcoholic beverages. In addition, price pressures for housing and furnishing.
Inflation clocked in at 1.7% in September, rising from August’s flat reading. Meanwhile, the trend pointed up mildly, with annual average inflation coming in at 0.5% in September (August: 0.3%), while core inflation ticked up to 0.2% in September from August’s 0.1%.
Regarding the outlook, Kyrstal Tan and Sanjay Mathur, economists are ANZ Research, commented:
“Looking ahead, inflation will be supported by a further reopening of the economy. However, the significant slack in the economy and relief measures to help with the cost of living will help cap overall inflation. For instance, the energy policy committee is intervening to keep domestic diesel prices in check in October, while the government also has plans to freeze cooking gas prices from October to January to reduce the burden on households.”