Thai headline CPI meets forecast in Dec, seen slowing in 2023

BANGKOK  – Thailand’s headline consumer price index (CPI) rose 5.89 percent in December from a year earlier, in line with analyst forecasts, but above the previous month driven by higher energy and food prices, government data showed on Thursday.

The index compared with a forecast for a 5.9-percent rise in December in a Reuters poll and followed November’s 5.55- percent increase.

The pace remains well above the central bank’s target range of 1 percent to 3 percent, reinforcing expectations that the central bank will raise its key interest rate at its next meeting on Jan. 25, to bring prices back within target.

The core CPI index was up 3.23 percent in December from a year ago,the ministry said, versus a forecast rise of 3.28 percent,

For 2022, headline CPI increased 6.08 percent, a 24-year high, while the core CPI index rose 2.51 percent.

Headline inflation is expected to slow to 2 percent to 3 percent in 2023, helped by a high base and a global slowdown, senior commerce ministry official Poonpong Naiyanapakorn told a briefing.

The index, however, is set to remain high in the first quarter this year due to a low base in the same period last year, but should not top 5 percent, he said.