Headline CPI up 2.67%, slowest in 16 months

Thailand's headline inflation dropped to its lowest in 16 months in April, coming in close to expectations owing to lower energy and food prices and a high base in 2022, the Commerce Ministry said on Wednesday.

The headline consumer price index (CPI) rose 2.67% in April from a year earlier, compared with a forecast rise of 2.70% in a Reuters poll, and against March's 2.83% increase.

The core CPI index was up 1.66% in April from a year ago and under a forecast increase of 1.70%.

Headline inflation returned to the Bank of Thailand's (BoT) target range of 1% to 3% for the second month in a row. The Commerce Ministry on Wednesday said headline inflation should fall sharply in May.

In March, the BoT raised its policy interest rate by a quarter point to 1.75%. The central bank said its policy tightening would continue since inflation risks persisted.

The BoT will next review policy on May 31, when economists expect a further hike.

Last month, the Commerce Ministry cut its forecast for headline inflation to between 1.7% and 2.7% this year, from a previous forecast of 2% to 3%.

In January-April, headline inflation was 3.58%, with the core rate at 2.09%, the ministry said on Wednesday.