Thai inflation falls for first time in 25 months

A woman walks at the Maeklong market next to the train tracks, on the outskirts of Bangkok, Thailand. REUTERS/Jorge Silva/File photo

BANGKOK  – Thailand’s inflation rate fell for the first time in 25 months, thanks to falling energy prices due to government support measures and lower food prices, the commerce ministry said on Monday.

Thailand’s consumer price index (CPI) fell 0.31 percent in October from a year earlier, versus a 0.3 percent year-on-year rise in the previous month, according to data.

The figure compared with a forecast for 0.0 percent for October in a Reuters poll. The core CPI was up 0.66 percent year-on-year in October.

Headline inflation has been below the central bank’s target of 1 percent to 3 percent for the sixth consecutive month.

In the January-October period, the headline CPI rose an average 1.6 percent from the same period a year earlier, with the core CPI up 1.41 percent.

The ministry still sees headline inflation at 1 percent to 1.7 percent this year.

In September, the Bank of Thailand’s monetary policy committee unexpectedly raised the key interest rate by a quarter point to 2.5 percent, the highest in a decade, saying growth and inflation should pick up next year. It will next review policy on Nov. 29.