Wednesday, August 2, 2017

Energy The Key Driver Again As July CPI Ticks Up

Economic Research
2 August 2017

Economic Update

Thailand’s CPI rose 0.2% YoY in July, picking up from unchanged readings for the two consecutive months prior. The return of inflation was driven mainly by higher petrol prices and a smaller drop in food costs. Core CPI gained 0.5% YoY in July, ticking up from +0.4% in the month before.
Going forward, we maintain our forecast for the CPI to rise 1.1% in 2017 from 0.2% last year. This is on account of overall higher energy prices, sustained economic recovery, tightening labour conditions, and an expected pick-up in private consumption in 4Q.
With CPI benign and economic growth prospects still moderately positive, we do not expect the BoT to alter the policy rate in 2017.

Economist:  Ng Kee Chou  | +603 9280 2179

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