Display mode (Doesn't show in master page preview)

7 Jun 2024

Thai Economy

Inflation hit the highest level in 13 months of 1.54% YoY in May 2024 Inflation is projected to return to BOT’s target range during the remainder of 2024 (Business Brief No.4064 Full Ed.)

คะแนนเฉลี่ย

Inflation hit the highest level in 13 months of 1.54% YoY in May 2024 Inflation is projected to return to BOT’s target range during the remainder of 2024  

  • Thailand’s headline inflation continued to rise for the second consecutive month in May 2024, driven by higher electricity costs, domestic oil prices, plus prices of fresh vegetables, fruits, and eggs.
  • It is anticipated that inflation will increase at a slower rate in June 2024, compared to that reported for May 2024, because the low base effect from electricity costs may diminish while the power tariffs for May to August are being capped. Additionally, vegetable prices are set to decline after the extreme heat has ended and the rainy season has begun.
  • Looking into the remainder of 2024, it is expected that headline inflation will lean towards the MPC’s target range of 1-3 percent. However, KResearch maintains our projection for 2024 headline inflation at 0.8 percent on average in line with the low base of 4Q23 while the government’s decision to gradually float domestic energy prices may ease pressure on the MPC to cut its policy rate.

View full article


Thai Economy