Thai November headline inflation misses forecast, below central bank target

BANGKOK (Reuters) – Thailand’s headline consumer price index (CPI) rose 0.95% in November from a year earlier, driven by higher food and energy prices, after the previous month’s annual increase of 0.83%, the commerce ministry said on Wednesday.

The figure compared with a forecast rise of 1.1% in a Reuters poll, and was below the central bank’s target range of 1% to 3%.

The core CPI was up 0.80% in November from a year earlier, slightly above a forecast increase of 0.77%.

In the January-November period, average annual headline inflation was 0.32%, with core inflation at 0.55%.

Headline inflation could be at 1.2% to 1.3% in December, and coming at 0.4% to 0.5% for the full year, Poonpong Naiyanapakorn, director of the ministry’s trade policy and strategy office, told a press conference.

The ministry projected headline inflation at between 0.3% to 1.3% in 2025, helped by expected stronger economic growth and government stimulus measures.

On Tuesday, Finance Minister Pichai Chunhavajira said he wanted a further rate cut to support the economy as inflation was low.

Bank of Thailand Governor Sethaput Suthiwartnarueput said on Tuesday a mix of policies was needed to manage the economy as interest rates alone cannot address everything, however.

In October, the central bank’s monetary policy committee unexpectedly cut the key interest rate by a quarter point to 2.25% but said it was not the start of an easing cycle.

The next policy review is on Dec. 18.