Thailand’s commerce ministry reported on Thursday that the country’s inflation rate accelerated in January, aligning with analysts’ forecasts and remaining within the central bank’s target range for the second consecutive month, driven by rising energy and food prices.
The Thai headline consumer price index (CPI) increased by 1.32% year-on-year in January, staying within the central bank’s target of 1% to 3%. This result followed a 1.23% rise the previous month and matched the 1.30% increase anticipated in a Reuters poll.
Meanwhile, the core CPI for the first month of 2025 rose by 0.83%, slightly above the predicted 0.80%.
According to Poonpong Naiyanapakorn, director of the ministry’s trade policy and strategy office, headline inflation in February is expected to mirror January’s level and hover around 1.1% to 1.2% in the first quarter of 2025. He characterized the current inflation rate as “appropriate” for the economy.
The ministry maintains its forecast for headline inflation to range between 0.3% and 1.3% in 2025, following a 0.40% rate last year.
In an interview with Reuters last week, Bank of Thailand Governor Sethaput Suthiwartnarueput projected headline inflation to be 1.1% for this year, deeming the present policy interest rate of 2.25% suitable. However, the central bank also signaled its readiness for rate adjustments if necessary.
The Bank of Thailand (BOT) held its benchmark rates steady in December after an unexpected 25-basis-point reduction in October. The next policy review is scheduled for February 26.
Deputy Finance Minister Paopoom Rojanasakul expressed on Monday a desire for a key rate cut this year and indicated plans to discuss potential monetary policy easing with the central bank.
