Inflation target brought down to 3-year low
The Commerce Ministry has lowered the full-year inflation target from 2.8-3.4 per cent to 2.1-2.6 per cent, the lowest level in three years.
The revision followed the 9-month expansion of the consumer price index of only 2.36 per cent.
The ministryâ€™s new inflation projection assumes that the average Dubai crude oil will be in the range of US$90-$110 per barrel from the previous estimate of $100-$120. The dollar/baht exchange rate is also expected to strengthen from 23-32 on average to 28.5-32.5. Lower fuel prices are the key for the revision.
In September alone, inflation rose at the lowest rate in 46 months at 1.42 per cent year on year, and by only 0.16 per cent month on month.