BANGKOK (Reuters) – Thailand's commerce ministry said on Monday that the inflation rate has returned to its target range for the first time since May last year, supported by higher energy and food prices.
Thailand's headline consumer price index rose 1.23% in December from a year earlier, within the central bank's target of between 1% and 3%, after the previous month's annual increase of 0.95%, the ministry said.
This figure compares to expectations of a 1.47 percent increase in a Reuters poll.
Core CPI rose 0.79% in December from a year earlier, slightly below the expected 0.81% increase.
In 2024, annual headline inflation averages 0.40%, with core inflation at 0.56%.
The headline inflation rate in January is expected to be around 1.25% and exceed 1% in the first quarter of this year, Punpong Nayanapakorn, director of the ministry's Trade Policy and Strategy Office, said at a press conference.
The ministry maintained its headline inflation forecast at between 0.3% and 1.3% in 2025, supported by expected stronger economic growth and government stimulus measures.
Last month, Finance Minister Pichai Chunhavajira said the Bank of Thailand would have to raise inflation to the middle of the target range and must ensure the baht is competitive.
On December 18, the central bank left its key interest rate unchanged at 2.25%, after a surprise cut at the previous review in October.
The bank had expected headline inflation to reach 1.1% in 2025. The next interest rate review is scheduled for February 26.
