Thailand's Consumer Price Index in November

BANGKOK (Reuters) – Thailand's headline consumer price index (CPI) rose 0.95% in November year-on-year, driven by increases in food and energy prices. This follows a 0.83% annual increase the previous month, reported by the commerce ministry on Wednesday.

The latest figure was below the forecasted 1.1% rise in a Reuters poll and fell short of the central bank's target range of 1% to 3%.

The core CPI increased by 0.80% in November, slightly above the predicted 0.77% growth.

From January to November, the average annual headline inflation was 0.32%, while core inflation stood at 0.55%.

Forecasts suggest that headline inflation could range between 1.2% and 1.3% in December, contributing to an estimated annual rate of 0.4% to 0.5%. Poonpong Naiyanapakorn, director of the ministry's trade policy and strategy office, shared these insights during a press conference.

Looking ahead, the ministry projected headline inflation to be between 0.3% and 1.3% in 2025, supported by anticipated stronger economic growth and government stimulus measures.

On Tuesday, Finance Minister Pichai Chunhavajira expressed his desire for a further rate cut to bolster the economy given the low inflation rates.

Bank of Thailand Governor Sethaput Suthiwartnarueput stated that a combination of policies is necessary to manage economic challenges, emphasizing that interest rates alone are insufficient.

In October, the central bank's monetary policy committee unexpectedly reduced the key interest rate by a quarter-point to 2.25%, clarifying that this decision did not mark the beginning of an easing cycle. The next policy review is scheduled for December 18.