Inflation rate in Thailand dips for first time in over two years
The Commerce Ministry of Thailand announced today that the country’s inflation rate has dipped for the first time in 25 months, primarily due to a drop in energy and food prices. This development is attributed to the government’s support measures.
The consumer price index (CPI) noted a 0.31% reduction in October, compared to the same period last year. This contrasted with a 0.3% year-on-year increase in the previous month. The data matched the forecasted 0.0% for October, as predicted in a Reuters poll.
Meanwhile, the core CPI for October escalated by 0.66% from the same period last year. Interestingly, the headline inflation remained below the central bank’s target range of 1% to 3% for six months in succession. The first ten months of the year saw the headline CPI rise by an average of 1.60% from the same period a year earlier, while the core CPI increased by 1.41%.
Despite these numbers, the ministry maintains its projection for the headline inflation ranging between 1.0% and 1.7% for this year. In an unforeseen move in September, the Bank of Thailand’s monetary policy committee escalated the key interest rate by a quarter point to 2.50%, marking the highest in the past decade. The committee justified this hike stating that they expect growth and inflation rate to surge in the coming year.
The next policy review is scheduled for November 29, reported Bangkok Post.
With worries over a looming recession, inflation rates, and elevated interest rates, investors are on the lookout for promising investment opportunities. Stock enthusiasts are of the view that global interest rates are nearing their peak, and central banks are closely monitoring the inflation situation. Read more HERE.
The significant increase in vegetable prices in India has had repercussions for both consumers and the food industry, leading to the well-known fast-food chain Burger King removing tomatoes from various branches across the country.
Burger King, which operates more than 400 outlets across India, is emulating the actions of McDonald’s and Subway, both of which have been affected by the country’s most severe food inflation rate since January 2020. Read more HERE.
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