FW: RHB | Thailand | December CPI Slows On Energy Costs

 

 

 

 

 

Economic Research			4 January 2018
Thailand
Economic Update
December CPI Slows On Energy Costs   Thailand’s consumer price index (CPI) slowed to +0.8% YoY in December, weighed down by a softer increase in energy costs. Meanwhile, food and beverage (F&B) prices increased, cushioning some of the downside. Core CPI grew 0.6% YoY, steady for the third consecutive month. For the whole year, the kingdom’s CPI gained 0.7% in 2017, picking up from +0.2% the year before. Energy costs climbed the most, whereas food prices stalled after jumping 1.6% in 2016. Going forward, we maintain our forecast for CPI to rise 1.2% in 2018. Private consumption is set to be stronger, lifted by better consumer sentiment as economic activities pick up. Food prices would likely increase, after shedding the high base effect from 2017. Consumer sentiment is set to improve, in line with higher economic growth and increased government assistance. However, energy prices may lag as oil prices could see only a smaller increase compared to 2017. In any case, since rural conditions have yet to improve, our view is that the Thai Oil Fund would likely step in to smooth any sharp gains in petrol prices in 2018.   Economist:  Ng Kee Chou  | +603 9280 2179
To access our recent reports please click on the links below:   2 January: MPI Rebounds After October Dip 2 January: FX Reserves’ Rise Supports Infrastructure Roadmap 26 December: Agricultural Exports Soar; Industrial Exports Resilient 21 December: BoT Maintains Key Repo Rate At 1.5% 4 December: CPI Inched Higher On Energy Cost
Economic Team
Arup Raha	Group Chief Economist	arup.raha@rhbgroup.com		+65 6232 3896
Peck Boon Soon	Chief ASEAN Economics	bspeck@rhbgroup.com		+603 9280 2163
Vincent Loo	Malaysia, Vietnam	vincent.loo@rhbgroup.com		+603 9280 2172
Ng Kee Chou	Singapore, Thailand	ng.kee.chou@rhbgroup.com		+603 9280 2179
Rizki Fajar	Indonesia, Philippines	rizki.fajar@rhbgroup.com		+6221 2970 7065
Aris Nazman Maslan	Malaysia, Vietnam	mohd.aris.nazman@rhbgroup.com		+603 9280 2184

                                                                                                                                    

 

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