The country’s headline consumer price index (CPI) rose 0.88% in August from a year earlier, quickening from a 0.38% year-on-year increase in the previous month, the Ministry of Commerce said on Tuesday.
Inflation in August was driven by higher energy prices while food prices were steady. September headline inflation is expected to be steady or to rise slightly, the ministry said in a statement.
August was the fourth successive month that headline inflation was below the Bank of Thailand’s target range of 1% to 3%.
The August figure compared with a forecast rise of 0.6% in a Reuters poll. The core CPI was up 0.79% year-on-year in August, compared with an increase of 0.86% in July.
For the first eight months of this year, headline CPI rose 2.01% and core CPI was up 1.61% year-on-year, the ministry said.
The central bank’s Monetary Policy Committee on Aug 2 raised its benchmark interest rate by 25 basis points to a nine-year high of 2.25%. Most analysts believe the central bank is now at or close to the end of its rate-hiking cycle.
Monetary policy makers said that while inflation had fallen appreciably, there was still a risk of a pickup as the tourism sector continues to recover.
The next MPC meeting is scheduled for Sept 27.