According to Thailand's Ministry of Commerce, December Headline Inflation slid to a 62-month low of 0.60 percent YoY – as expected – versus the 1.26 percent YoY reported for November. Falling domestic retail fuel prices in line with global oil prices around the end of 2014, plus ebbing raw food costs, are major factors weighing on Headline Inflation right now, thus staying lower than Core Inflation for the third consecutive month. Core Inflation inched up to 1.69 percent YoY in December, a bit higher than the 1.60 percent YoY pace recorded for November.
During 1Q15, we at KResearch expect that inflation will soften further, with monthly Headline Inflation falling below 0.5 percent YoY, thus giving the Bank of Thailand some leeway to maintain their accommodative monetary policy stance in order to steer the economy towards a smooth recovery.
KResearch is of the view that such low inflation does not represent deflation because it has been primarily caused by supply side factors, e.g., the fast fall in global oil prices. It is expected that household spending should improve gradually over the coming months.
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.