Bangkok: Thailand’s inflation rate returned to the central bank’s target range for the first time since May last year, driven by higher energy and food prices, the commerce ministry announced on Monday. The Thai headline consumer price index (CPI) rose by 1.23% in December from a year earlier, falling within the Bank of Thailand’s target range of 1% to 3%. This marked an increase from November’s annual growth of 0.95%, the ministry said.
The December CPI came in slightly below the forecasted 1.47% increase, according to a Reuters poll, signaling a more moderate inflationary trend than anticipated.
The core CPI, which excludes volatile food and energy prices, rose by 0.79% year-on-year in December, just under the predicted 0.81% increase. For the full year of 2024, average annual headline inflation was recorded at 0.40%, with core inflation at 0.56%.
Looking ahead, the commerce ministry expects headline inflation in January to be around 1.25%, with inflation likely to remain above 1% during the first quarter of this year. Poonpong Naiyanapakorn, director of the ministry’s trade policy and strategy office, shared the outlook during a press conference.
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The ministry maintained its inflation forecast for 2025 at between 0.3% and 1.3%, supported by expected stronger economic growth and government stimulus measures.
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In a related statement, Finance Minister Pichai Chunhavajira noted that the Bank of Thailand would need to raise inflation to the midpoint of the target range while ensuring the competitiveness of the baht. On December 18, the central bank kept its key interest rate unchanged at 2.25%, after a surprise cut in its previous meeting in October. The central bank had earlier forecasted headline inflation at 1.1% for 2025. The next rate review is scheduled for February 26.
