BANGKOK (Reuters) – Thailand inflation rate returned to the target range for the first time since May last year, lifted by higher energy and food prices, the commerce ministry said on Monday.
Thai headline consumer price index rose 1.23% in December from a year earlier, within the central bank’s target of 1% to 3%, after the previous month’s annual increase of 0.95%, the ministry said.
The figure compared with a forecast rise of 1.47% in a Reuters poll.
The core CPI was up 0.79% in December from a year earlier, just under a forecast increase of 0.81%.
In 2024, average annual headline inflation was 0.40%, with core inflation at 0.56%.
Headline inflation in January is expected to be about 1.25% and at above 1% in the first quarter of this year, Poonpong Naiyanapakorn, director of the ministry’s trade policy and strategy office, told a press conference.
The ministry maintained its headline inflation forecast at between 0.3% and 1.3% in 2025, helped by expected stronger economic growth and government stimulus measures.
Last month, Finance Minister Pichai Chunhavajira said the Bank of Thailand would have to lift inflation to the midpoint of the target range and must ensure the baht was competitive.
On Dec. 18, the central bank left its key interest rate unchanged at 2.25%, after a surprise cut in the previous review in October.
It had forecast headline inflation of 1.1% in 2025. The next rate review is on Feb. 26.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; Writing by Chayut Setboonsarng; Editing by Martin Petty)
