April inflation, March factory output expected to fall

April inflation, March factory output expected to fall

A worker is seen on an automotive production line in Si Racha district of Chon Buri province. (File photo)
A worker is seen on an automotive production line in Si Racha district of Chon Buri province. (File photo)

Thailand's annual headline inflation rate in April likely slowed slightly from the previous month, but stayed inside the central bank's target range for a second straight month, a Reuters poll showed.

The median forecast of 10 economists was for the headline consumer price index (CPI) to rise 1.20% in April after March's 1.24% increase.

The Bank of Thailand (BoT) has forecast 2019 headline inflation of 1.0%, against its 1-4% target range.

The core inflation rate, which strips out energy and fresh food prices, was seen at 0.60% in April, according to the poll. It was 0.58% in March.

The poll showed that Thailand's manufacturing production index in March probably contracted 2.7% from a year earlier, after dropping 1.6% in February.

The central bank has left its policy interest rate at 1.75% since tightening in December for the first time since 2011. It next reviews monetary policy on May 8.

Earlier this month, BoT Governor Veerathai Santiprabhob said low inflation was not a concern and the central bank would focus more on growth and risks to financial stability. 

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