Inflation hits 12-month high

business June 02, 2014 00:00

By Reuters

Thailand's headline inflation rate accelerated to a 14-month high in May on higher food and energy prices, government data showed on Monday, posing an additional headache for policymakers facing a cooling economy and fears of growing public unrest.

The headline consumer price index rose 2.62 per cent in May from a year earlier, the Commerce Ministry said. That compared with the median forecast in a Reuters poll for a 2.59 percent rise and followed a 2.45 per cent increase in April.
Analysts said the central bank was likely to stand pat at its next policy review on June 18 as it weighs the dilemma of rising inflation and a slowing economy. The new military government faces the task of reviving an economy that shrank in the first quarter after months of political unrest.
The core inflation rate, which strips out fresh food and energy prices, quickened to 1.75 per cent year-on-year in May, from 1.66 per cent in April and against 1.70 percent in the poll. That was still well within the Bank of Thailand's target range of 0.5-3.0 per cent, which guides monetary policy.