November inflation up 0.99%, short of target

November inflation up 0.99%, short of target

In this on Sept 30, 2016 file photo, brisk demand during the vegetarian festival keeps a food vendor busy at the Klong Toey fresh market in Bangkok. (Bangkok Post file photo)
In this on Sept 30, 2016 file photo, brisk demand during the vegetarian festival keeps a food vendor busy at the Klong Toey fresh market in Bangkok. (Bangkok Post file photo)

The annual consumer inflation rate increased in November, in line with forecasts, government data showed on Friday, but the pace was still below the central bank's target, giving it room to keep monetary policy loose.

The headline consumer price index rose 0.99% in November from a year earlier, up from October's 0.83% rise.

The Bank of Thailand forecast 2017 headline inflation of 0.6%, below its 1% to 4% target range. But it expects that to return to the band by mid-2018.

On Nov 8, the central bank left its policy interest rate unchanged at 1.50%, a near record low. The rate has been at that level since April 2015. It next reviews the monetary policy on Dec 20.

Most economists expect no change well into 2018.

The core CPI index, which excludes raw food and energy prices, rose 0.61% in November year-on-year, roughly in line with the poll's median forecast of 0.63% increase.

In the January-November period of 2017, annual headline CPI rose 0.66% and the core index increased 0.55%.

The Commerce Ministry predicts headline inflation of 0.7% for this year and a range of 0.6% to 1.6% for next year.

Inflation has been held down by state price controls, subsidies and soft domestic demand.

Do you like the content of this article?
COMMENT