Headline Inflation increased to 2.62 percent YoY in May, as expected, the highest level in14 months. It has climbed steadily since early this year despite the sluggishness seen in domestic consumption. Meanwhile, Core Inflation jumped to a 20-month high of 1.75 percent YoY, slightly higher than what had been expected before, driven by rising food and energy prices.
Although some energy prices were kept steady as part of the government's policy to address economic problems, it is likely that the Consumer Price Index (CPI) will gradually increase over the coming months amid a weakening Baht and volatile food costs, along with global energy prices that will continue to dictate retail fuel prices here.
Given price pressure and marginal increases in inflation than what had been expected before over the past five months, which may cause an average inflation rate for 2014 to increase higher-than-expected, we at KResearch, therefore, have revised upward our growth projection for 2014 Headline Inflation to 2.6 percent, or somewhere within 2.4-2.8 percent and Core Inflation to 1.7 percent, or within 1.5-1.9 percent.
Enter the code from the poll
Annotation
This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.