Consumer prices edged up in July, largely driven by fresh fruit and vegetables, fresh food, pork, milled rice and milled glutinous rice.
According to the Commerce Ministry’s report, the consumer price index (CPI), which gauges headline inflation, rose by 0.98% last month from July 2018, up from a 0.87% year-on-year rise in June, 1.15% in May, 1.23% in April and 1.24% in March. The uptick was 0.73% in February and 0.27% in January.
On a month-to-month basis, overall prices surged 0.06% in July after contracting 0.36% in June, boosted by fresh fruit and vegetables.
Core CPI, which excludes volatile food and energy prices, rose 0.41% year-on-year in July and 0.03% from June.
Headline inflation in July was below the central bank's 1-4% target range for a second straight month.
For the first seven months of the year, headline inflation averaged 0.92%. Core inflation stood at 0.55%.
Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office under the Commerce Ministry, said overall prices in July rose despite a sharp drop in energy prices, which fell 5.44% from the same month last year.
Last month the Commerce Ministry lowered its annual inflation forecast to a range of 0.7-1.3% this year from 0.7-1.7% because of lower energy prices, a stronger baht and dim export prospects.
Given relatively low consumer prices in the first seven months, the ministry urged the government to speed up introducing new economic stimulus packages and developing planned infrastructure projects.