Thailand’s headline inflation rate was lower than expected in September and decelerated from the previous month, but higher than expected consumer prices increased speculation of a further interest rate hike in November.
The headline consumer price index (CPI) rose 6.41% in the 12 months to September, helped by easing energy prices and last year’s low base, and lower than August’s 7.86% increase, which was a 14-year high, according to commerce ministry data.
The reading was better than the average 6.60% rise predicted by analysts.
The core CPI index, which does not include energy and fresh food prices, was up 3.12% in September from a year ago, also beating analyst predictions and marginally lower than August’s 3.15% rise.
Inflation could fall further in the fourth quarter of this year as a result of government support measures for energy and food prices, the ministry said.
It forecast headline inflation to average between 5.5% and 6.5% this year.
Bank of Thailand Governor Sethaput Suthiwartnarueput said he will adopt a gradual and measured approach to bring inflation back to target.
The bank last week raised its key interest rate by a quarter point to 1.00% to fight inflation. It will next review the rate on November 30th, when most economists expect a further, gradual hike.