Thailand's headline inflation eased last month after hitting a 14-month high in May due largely to the military government's steps to control energy and goods prices.
A variety of ready-to-go meals are available at a market near Zeer Rangsit shopping mall, north of Bangkok. June inflation rose slightly after authorities capped prices of food, diesel and cooking gas. THITI WANNAMONTHA
The consumer price index based on 450 items rose by 2.35% year-on-year in June after a 2.62% increase in May, the Commerce Ministry said in a report.
Higher prices were found in 175 product items including white rice, pork, fresh poultry, eggs, finished food and detergent, while 191 items saw prices unchanged and 84 items such as glutinous rice, fresh vegetables and fruit and fuel had their prices lowered.
"Local inflationary pressure eased in June thanks to the close watch on the country's cost of living by the National Council for Peace and Order (NCPO)," said Ampawon Pichalai, an adviser to the ministry.
The NCPO's measures included a freeze on the prices of diesel and cooking gas for household use, a price reduction for petrol and gasohol and working with businesses to control prices of hundreds of goods until November.
On a month-on-month basis, prices were 0.1% higher in June, while prices in the first six months of the year surged 2.23% from the same period in 2013, driven by higher prices for non-alcoholic drinks and food, particularly meat, poultry and fish, fruit and vegetables, eggs and dairy products, seasonings and finished food.
Core inflation, which excludes fresh food and fuel prices and is based on 312 products and services, also eased to 1.71% year-on-year in June compared with its 17-month high of 1.75% in May.
In the first six months, core inflation rose by 1.45% year-on-year, within the Bank of Thailand's target range of 0.5% to 3%.
Ms Ampawon said the ministry expects Thailand's inflation will average 2.5% in the third quarter and 2.56% in the fourth quarter.
The rate in the second half is expected to stay at 2.53% due to domestic and external drivers including oil prices, which are expected to average US$110-111 a barrel, and a foreign exchange rate of 29-33 baht to the US dollar.
For the full year, inflation is forecast to average 2.4%, with the ministry maintaining its inflation target of 2% to 2.8%.
Ms Ampawon said the ministry was also committed to proceeding with measures aimed at cutting consumers' cost of living in order to spur local consumption and cut trade obstacles.